1. Paying International Visitors  Kristina Sparks, FMS-Tax  Lynn Schoch, International Services

2. Once upon a time...

3. . And they all lived happily(?) every after.

5.  Before the visit  Figure out the right visa type (OIS)  During the visit  Get documents and signatures. (Dept)  After the visit  Apply tax treaty benefits and complete payment (FMS-Tax) Paying International Visitors

6. Before the Visit Protect the Visitors – Immigration Issues  How long will they stay?  Will they be paid?  Will they take IU courses?  What countries are they from? Talk to OIS.

7. Before the Visit: Talk to OIS. Scholars Joanna Snyder Assistant Director for Scholar Services snyder1@indiana.edu -------------------------- Students Jenny Bowen Assistant Director for Student Services jabowen@indiana.edu 855-9086

8. Before the Visit  Outside the U.S.  What is the best visa type?*  Already in the U.S.  Will their current visa type work? * Visa type = immigration status as listed on the I-94 card. (F-1, H-1B, WB, B-2)

9. Before the Visit Protect the Visitors – Financial Issues  What kind of payments can we make?  Compensation (honorarium)  Travel  Fellowship (usually taxable)  Royalty  How much tax will they pay?  Possible tax treaty benefits Talk to FMS-Tax.

10. Before the Visit Add-New-Person E-doc (generates UID)  YES: IU-sponsored Visa  J scholars and visitors  NO: Not IU-sponsored Visa  B-1, B-2, WB, WT – business and tourist  Other visitors here less than two weeks

11. No Longer Required for Payment B-1/B-2 compliance form

12. No Longer Required for Payment H-1B Travel Reimbursement approval

13. No Longer Required for Payment J-1 Exchange Visitor Authorization for Occasional lectures To protect status, J-1 visitor sponsored by another institution must obtain:  a letter from IU with details of the arrangement  a letter from home department recommending participation  a letter from sponsoring intl advisor noting compliance with regulations.

14. During the Visit: documents and signatures Cover form Everyone

15. During the Visit documents and signatures W-8BEN Everyone

16. During the Visit documents and signatures I-94 Everyone

17. During the Visit documents and signatures I-797 when presented

18. During the Visit documents and signatures DS-2019 J- only

19. During the Visit documents and signatures ITQ Compensation for services or fellowship

20. During the Visit documents and signatures W-7 When no SSN; must have interview with OIS staff.

21. During the Visit documents and signatures 8233 Honorarium with treaty benefits, or W-7 (follow-up form prepared by FMS-Tax)

22. After the Visit Protect the Institution – Payment and Tax Issues  Do we have what we need to make a payment?  How much has to be withheld?

23. After the Visit Do we have what we need to make a payment?  Documentation ~ Tax status  Purpose ~ Classification of income  Activity location ~ Income sourcing

24. After the Visit Documentation ~ Tax status  Establish tax status in U.S.  Determine eligibility for tax treaty benefits  Notify visitor of limitations

25. After the Visit Purpose ~ Classification of income  Independent Contractor Services  Scholarship or Fellowship  Travel  Royalty

26. Activity Location ~ Income Sourcing  Location where services performed  Location of funding  Location of activity After the Visit

27. How much has to be withheld?  Documentation ~ Tax status  Purpose ~ Classification of income  Activity location ~ Income sourcing  Tax Treaty

28. After the Visit Documentation ~ Tax status Determined by:  Citizenship or Permanent Residency Status  Substantial Presence Test Physical days present in the U.S. Immigration status during each visit Requires 6 years of visit history

29. After the Visit Documentation ~ Tax status  Nonresident Alien  Withholding at time of payment unless exception applies  Reported on 1042-S  Resident Alien No withholding at time of payment Reported on 1099-MISC or self-reported

30. After the Visit Purpose ~ Classification of income  Independent Contractor Services – 30%  Scholarship or Fellowship – 33.4%, 17.4%  Travel – 0% *  Royalty – 30%

31. After the Visit Activity location ~ Income sourcing  U.S. Sourced  Withholding occurs unless exception applies  Foreign Sourced No withholding

32. After the Visit Tax Treaty  Requirements of treaty article  U.S. Tax ID or application  Additional documentation necessary  Signed documentation

33. After the Visit Payment Process  Create foreign vendor W-8BEN Foreign Individual/Entity Certification  Create Payment Request Forward documentation FMS-Tax will notify you with any additional documentation requirements.

34. After the Visit Payment Process  Possible Outcomes Not reportable income Reportable income Foreign Sourced Tax Treaty  Withhold taxes  Department gross-up

35. After the Visit: Talk to FMS-Tax Position Vacancy Tax Compliance Officer taxpayer@indiana.edu 856-5424 -------------------------- Tax Compliance Officers Michael Butcher 856-4534 John Fox 855-7100 Vickie Fry 856-0247 - Tax law -Payment status -Documentation requirements

36. Paying Short-Term Visitors: A work in progress Liability of payee Liability of payor Systemic abuse

37. Paying Short-Term Visitors: A work in progress iStart – departmental services  Request for J, H-1B, O visa.  Request for extensions.  Request for permanent residency.  Coming: Request for short-term visitor assistance. https://istart.iu.edu/istart/co ntrollers/admin/AdminEngine.cfm