Appendix: Foreign National Visitor / Non-Resident Alien Requirements

Home

Departments

Staff Directory

Forms Directory

Resource Directory

Development & Training

Financial Affairs
(Dept. Contact Info)
UC Santa Cruz
1156 High Street
University of California
Santa Cruz, CA 95064-1077

Print this Page:

controller@ucsc.edu
Photo Credits

Updated: 11/15/2007

Appendix: Foreign National Visitor / Non-Resident Alien Requirements

For detailed information regarding foreign national visitors / non-resident requirements, locate the financial process from the left navigation on which you need further information.

Forms

Quick links to forms referenced in this guide are provided below.

Important Form Information:

Type

Name

Foreign_Personal_Services_Checklist

Foreign_Scholarship_Fellowship_Checklist

Payee_Setup_204

Payee_Setup_Instructions

Vendor_Electronic_Funds_Authorization

What to Know

General Information

A nonresident alien is a non-U.S. citizen who does not hold a Resident Alien Card and is issued a visa or Employment Authorization Document.

Different types of visas are issued based on the purpose of the visit.

Under NAFTA, a Canadian or Mexican visitor who is allowed entry without a visa; is treated the same as a B-2 or WT visitor.
Visitors, from a country participating in the Visa Waiver Program, are allowed entry without a visa and given WB or WT classification when they enter the US, thus being treated the same as B-1 or B-2 visa holders.
A nonresident alien must provide an individual tax payer identification number (ITIN) or social secirity number (SSN) in order to receive a honoraria, consulting, performance, or personal service payment.

Tax Withholding Rates and Tax Treaties

Payments for services provided, excluding travel expense reimbursements, within the United States are generally subject to Federal tax withholding and reporting on IRS Form 1042-S.

Fellowship, scholarship payments

Federal tax withholding rate: 14%

Other payments

Federal tax withholding at a rate of 30% of the payment amount reduced by an allowance amount based on the number of days that service was provided
California state tax withholding at a rate of 7%

Tax Treaty. An individual from a country of residence with a tax treaty with the United States may apply for a tax exemption on IRS Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Note: tax treaty benefits are only applicable to Federal tax.

Documentation requirements

Foreign visitors or non-resident aliens requesting a UCSC payment must submit the following:

Travel Reimbursement. Use a UCSC Post Travel Expense Report Form to request payment.

Foreign National Visitor / Nonresident Alien Requirements per visa type
A Payee Set-up Form_204 must be on file with the Accounting Office before payment can be made

Other Payments. Use a UCSC Direct Payment (Excel | PDF) to request payment for honorariums, scholarships, fellowships, or prizes/awards. Use a UCSC Direct Payment (Excel | PDF) or a UCSC Purchase Order to request payment for services or performances.

Foreign National Visitor / Non-Resident Requirements per visa type
An Individual Taxpayer Identification Number (ITIN) or Social Security Number must be provided on the form for a payment representing compensation (non-travel expense reimbursement)
An IRS Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of Nonresident Alien Individual form must be completed in order for adjustments to be made to Federal tax withholding amounts.
One or more of the following forms must be on file with the Accounting Office in order for adjustments to be made to state tax withholding amounts:

FTB Form 588 Nonresident Withholding Waiver Request (as applicable)
FTB Form 590 Withholding Exemption Certificate (as applicable)

Payments to foreign nationals will be expedited by submitting all required documents along with the request for payment. See:

Abbreviations listed describe documentation requirements specific to particular types of payments by visa type:

USCIS: US Citizenship and Immigration Services
IRS: Internal Revenue Service
EAD: USCIS Employment Authorization Document
FTB: California Franchise Tax Board
ISSS: UCSC International Scholar & Student Services

Employment Authorization Document (EAD)

Allowable Payments Required Forms Compensation Requirements

Honorarium

UCSC Direct Payment

Copy of front/back of EAD Card (Form I-766)

UC-W8BEN

Expenses must be incurred in connection with a usual academic activity lasting up to 9 days.

Individual may not receive honoraria from more than 5 educational institutions in the previous six-month period.

No Exceptions to payment policy are allowed.

An unexpired Employment Authorization Document that contains a photograph

Performance
Services

UCSC Purchase Order or UCSC Direct Payment

UC-W8BEN

Expenses must be incurred in connection with a usual academic activity lasting up to 9 days.

No Exceptions to payment policy are allowed.

Travel and Incidentals expense reimbursement

UCSC Post Travel Expense Report Form

Employment Authorization Document (EAD) Card

Expenses must be incurred in connection with a usual academic activity

A-1, A-2 Visa - Staff of foreign embassies and immediate family of diplomats

Allowable Payments	Required Forms
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of USCIS Form I-94

B-1 Visa - Visitor for business purposes

Allowable Payments	Required Forms	Compensation Requirements
Honorarium	UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of vaild form I-94 UC-W8BEN Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. Individual may not receive honoraria from more than 5 educational institutions in the previous six-month period. No Exceptions to payment policy are allowed.
Performance Services	UCSC Purchase Order or UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of vaild form I-94 UC-W8BEN Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. No Exceptions to payment policy are allowed.
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94 Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity

B-2 Visa - Visitor for pleasure purposes or a prospective student

Allowable Payments	Required Forms	Compensation Requirements
Honorarium	UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of valid form I-94 UC-W8BEN Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. Individual may not receive honoraria from more than 5 educational institutions in the previous six-month period. No Exceptions to payment policy are allowed.
Performance	UCSC Purchase Order or UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of vaild form I-94 UC-W8BEN Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. No Exceptions to payment policy are allowed.
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94 Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity

F-1 Visa - Foreign Student

Allowable Payments	Required Forms	Compensation Requirements
Scholarship or fellowship	UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of vaild form I-94 Copy of vaild form I-20 Copy of Employment Authorization Document (EAD) card (if non-UCSC student) UC-W8BEN	Notify the Financial Aid Office of a grant made to degree candidate Notify the Graduate Studies Office of a grant made to non-degree or post-doctoral candidate Payment is only allowed if UCSC issued the traveler's USCIS Form I-20
Performance Services	UCSC Purchase Order or UCSC Direct Payment Copy of valid form I-94 Copy of vaild form I-20 Copy of Employment Authorization Document (EAD) card (if non-UCSC student) UC-W8BEN	Notify the Financial Aid Office of a grant made to degree candidate Notify the Graduate Studies Office of a grant made to non-degree or post-doctoral candidate Payment is only allowed if UCSC issued the traveler's USCIS Form I-20 No exceptions to payment policy allowed
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94	Not Applicable

F-2 Visa - Dependent of a foreign student

Not eligible to receive a UCSC payment

H-1B Temporary professional worker in a specialty occupation

Allowable Payments	Required Forms	Compensation Requirements
Employee wage payment	Not Applicable	Not Applicable
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94	USCIS I-797 Notice of action - only if UCSC is specified on the Notice of Action

H-2A, H-2B, H-3, H-4 visas

Contact the UCSC International Scholar and Student Services Office (ISSS) for more information.

H-2A - Temporary agricultural worker
H-2B - Temporary worker whose skills are needed in the US
H-3 - Trainees or participants in special education exchange program
H-4 - Dependents of H-1B, H-2, H-3 visaholders

J-1 Scholar, J-1 Student visa

Visa Types

J-1 Scholar - Researcher, professor, or short-term scholar here under an exchange visitor program
J-1 Student - Student here under an exchange visitor program

Allowable Payments	Required Forms	Compensation Requirements
Honorarium Scholarship or fellowship Prize or cash award	UCSC Direct Payment Form Copy of photo page of unexpired foreign passport Copy of vaild form I-94 Copy of vaild form DS-2019 UC-W8BEN	Non-UCSC exchange visitors must be authorized by responsible officer of institutional program sponsor Notify the Financial Aid Office of a grant made to degree candidate Notify the Graduate Studies Office of a grant made to non-degree or post-doctoral candidate
Performance Services	UCSC Purchase Order or UCSC Direct Payment Form Copy of photo page of unexpired foreign passport Copy of vaild form I-94 Copy of vaild form DS-2019 UC-W8BEN	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. No Exceptions to payment policy are allowed.
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94	Not Applicable

O-1 Visa - Alien with extraordinary ability in Sciences, Arts, Education, Business or Athletics

Allowable Payments	Required Forms	Compensation Requirements
Employee wage payment	Not Applicable	May only be paid by the employer who filed and received approval of O-1 petition for period covered by petition
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94	Not Applicable

O-2 Visa - Worker assisting O-1 visaholder

Allowable Payments	Required Forms	Compensation Requirements
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94	Reimbursement allowablity is contingent on travel expense reimbursement arrangement made with O-1 visaholder

O-3 Visa - Dependent of O-1 or O-2 visa holder

Not eligible to receive a UCSC payment

P-1, P-2, P-3 Visa (Athletes / Entertainers)

Visa Types

P-1 Internationally recognized athlete or member of an entertainment group
P-2 Artist or entertainer in a reciprocal exchange program
P-3 Artist or entertainer in a culturally unique program

Allowable Payments	Required Forms	Compensation Requirements
Employee wage payment	Not Applicable	Not Applicable
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of USCIS Form I-94	May only be paid by the employer who filed and received approval of P-1, P-2, or P-3 petition for period covered by petition

P-4 Visa - Spouse or child of P-1, P-2, or P-3 visaholder

Allowable Payments

None - Not eligible to receive a UCSC payment.

Q-1 - Participant in an international cultural exchange program

Allowable Payments

None - Not eligible to receive a UCSC payment

TN Visa - Canadian or Mexican professional

Allowable Payments	Required Forms	Compensation Requirements
Employee wage payment	Not Applicable	Not Applicable
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94	USCIS: I-797 Notice of action - only if UCSC is specified on the Notice of Action

WB / WT Visa - Waiver for Business or Tourism

Allowable Payments	Required Forms	Compensation Requirements
Honorarium	UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of vaild form I-94 UC-W8BEN Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. Individual may not receive honoraria from more than 5 educational institutions in the previous six-month period. No Exceptions to payment policy are allowed.
Performance Services	UCSC Purchase Order or UCSC Direct Payment Copy of photo page of unexpired foreign passport Copy of vaild form I-94 UC-W8BEN Certification of Academic Activity	Expenses must be incurred in connection with a usual academic activity lasting up to 9 days. No Exceptions to payment policy are allowed.
Travel and Incidentals expense reimbursement	UCSC Post Travel Expense Report Form Copy of vaild form I-94 Certification of Academic Activity	Not Applicable

Foreign National Documents

The following documents affect the tax treatment of payments made to foreign visitors:

Foreign National Visitor / Nonresident Alien Requirements per visa type

Issuer	Form #	Description
		Passport - photo page of unexpired foreign passport A photocopy of this page must accompany all non-travel reimbursement payment requests.
USCIS	DS-2019	Certificate of Eligibility for Exchange Visitor (J-1) Status (Formerly IAP-66). Issued to the visitor by the ISSS to certify visa holder has J-1 status.
USCIS	EAD	Employment Authorization Document (EAD) Card Issued by the USCIS; employer must check the card to ensure it has not expired and the holder is eligible to work in the US.
USCIS	I-20	Certificate of Eligibility for Nonimmigrant (F-1) Student. Issued to the visitor by the ISSS to F-1 visa-holders, certifying work eligibility and other important information.
USCIS	I-797	Notice of Action (NOA) Approval Notice for TN and H-1B Issued by the USCIS. UCSC must be designated as employer in order for a non-reimbursement payment to be made to the visitor.
USCIS	I-94	Arrival/Departure Record The document is issued at the Port-of-Entry and provided by the traveler
FTB	590	Withholding Exemption Certificate Provides relief from California state tax withholding requirements.
FTB	594	State Notice to Withhold Tax at Source Provides for a reduction in California state tax withholding
IRS	8233	Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.
IRS	W-7	Application for IRS Individual Taxpayer Identification Number. An ITIN is required for a payment to be issued.
UCSC	204	Payee Setup Request Required from all individuals that directly receive a payment or have UCSC make a payment on their behalf.
UCSC	CAA	Certification of Academic Activity Required from all B-1, B-2, WB and WT visitors in order for a payment to be processed,
UCSC	W8BEN	Certificate of Foreign Status for Federal Withholding (formerly Statement of Citizenship Status). The Substantial Presence Test determines the tax withholding status of the visitor.

Key

USCIS: US Citizenship and Immigration Services
IRS: US Internal Revenue Service
FTB: California Franchise Tax Board
ISSS: UCSC International Scholar and Student Services Office

Where to get help

Assistance is available for the following topics:

Payments may be subject to tax withholding and reporting. Refer to the following check lists for documentation requirements:

Foreign_National_Scholarship_Fellowship
Foreign_National_Personal_Services
For additional assistance contact the Payroll Office

Other payments. Assistance with questions related to payments not subject to taxation may be obtained from the Financial Accounting and Reporting Office.
Payments involving contract and grants. Assistance may be obtained from the Extramural Funds Accounting Office.