Personal Services (Independent Contractor) NRA

• Payment Request Form
• ACH Authorization Form or Wire Authorization Form
• Invitation Letter or Contract
• W8-Ben for individual or W8-BEN-E for Beneficial Owner
• Foreign National Payee Information Form
• Copy of Visa
• Copy of Passport
• Copy of I-94 form (both sides)
• Copy of I-20

Yes, federal income tax is 30% unless the foreign national is exempt under a treaty benefit in which case they will need to complete all the necessary paperwork. California state income is taxable and subject to a 12.3% tax. The State of California does not recognize treaty benefits. 

Yes, they are taxable for federal withholding at 14%.

Yes, all foreign national visitors who receive pay for services must have either an ITIN or SSN, regardless of the amount received.  A foreign national visitor can apply for an ITIN prior to their visit to the U.S. by completing a Form W-7 with the Internal Revenue Service (IRS).

Yes, this form is required prior to a payment subject to chapter 3 withholding or a withhold able payment if he or she is the beneficial owner of the income, whether or not he or she is claiming a reduced rate of, or exemption from, withholding (including under an applicable income tax treaty).

A tax treaty is an agreement entered into between governments under which each country agrees to limit or modify the application of its domestic tax laws in an attempt to avoid double taxation of income - that is, having the same income taxed by both countries. Tax treaties vary, but they generally limit or exempt U.S. taxation of compensation made to residents of the foreign country. Some tax treaties are limited to an amount of time per year, and/or a limited dollar amount per year. Wages earned beyond either limit are subject to federal income tax withholding. See IRS Publication 901 U.S. Tax Treaties for additional information.

Form 8233 allows eligible visa holders to claim "exempt" from federal withholding on earnings as allowed by certain tax treaties. Eligibility is based on visa status and the substantial presence test. If eligible, you need to submit Form 8233 when you are hired or rehired, whenever you change job types or visa types, and each December for the upcoming calendar year if the tax treaty is to be applied. If an 8233 is not filed, the tax treaty will not be applied.

You must contact the Payroll Manager or Payroll Supervisor in the payroll office for verification of eligibility. If eligible, you will be required to come to the payroll office (Maher 112) to complete the necessary paperwork. Contact the payroll office at 619-260-4818 or payroll@sandiego.edu to schedule an appointment.

A Foreign National Payee Information Form is an information form that payroll office requires from you in order to ensure that your wages are reported and taxed correctly. You must complete a Foreign National Payee Information Form when you are hired or change visa types. Stop by the payroll office to obtain and complete this form.

Refer to IRS 901 U.S. Tax Treaties for current  tax treaty countries or call the IRS at 1-800-829-1040.

Yes, the IRS requires that both taxable and non-taxable payments made to non-resident aliens be reported on either Form W-2 or Form 1042-S. These forms are mailed out to you by January 31st of every year.

The IRS has a permanent staff in several U.S. Embassies.  These offices have publications and forms and can assist you with your tax questions.