NRA Payments nonresident aliens

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NRA Payments(non-resident aliens)

• How to correctly pay income to foreign
  individuals

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VISA types

• H-1 (long term sponsor needed)
• J-1 (max. 3 year stay sponsor needed)
• F-1 (max. 5 years students)
• B-1 (temporary for business)
• B-2 (temporary for pleasure or medical)
• B-1/2 (temporary for business pleasure)
• VWB (Visa Waiver for business)
• 24 countries have agreements with U.S.
• Maximum 90 day card
• VWT (Visa Waiver as a tourist)
• Canadian entering without inspection
• Only passport need to enter U.S.

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Honorarium payment to NRA

• College and Universities frequently make
  honorarium payments to foreign nationals for
  academic activities NOT involving employment.
• The IRS defines an honorarium as a payment of
  money to a person for participation in a usual
  academic activity for which NO fee is required.

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Who is eligible to receive an honorarium payment

• Any VISA type.
• Activity must NOT last longer than 9 days at any
  single higher education institution.
• Activity is conducted for the benefit of the
  institution.
• Visitor has not accepted an honorarium from 5
  other institutions during the past 6 months.

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Eligibility cont.

• If the activity DOES NOT meet these guidelines,
  the visitor MUST have a J-1 or H-1 VISA
• All VISA types can be reimbursed for travel
  expenses.
• Length of stay and work eligibility in the U.S.
  is monitored by the I-94 form (arrival /
  departure record). Every NRA is required to keep
  these documents in their passport.

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Other taxable items

• The IRS does consider free services given to
  NRAs taxable income. CCs NRA tax specialist
  needs to be aware of these types of income.
• Room and Board
• Misc. research budget
• Tuition
• Books
• Personal supplies

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Documents needed for Honorarium payments

• Recipient must complete a 8233 or
• W8-Ben
• The institution must complete the withholding
  agent certification portion of the 8233 or W8-Ben
  and attach any tax treaty statements.

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Honorarium payments overseas

• The IRS allows institutions to contract with
  individuals in foreign countries and pay them for
  services they provide. These services are not
  considered taxable U.S. income as long as none of
  the services are performed on U.S. soil.
• NO 8233 or W8-Ben is required

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How can I help?

• All employees need to take an active roll in
  documenting payments made to NRAs.
• All payments should be pre-approved by CCs NRA
  tax specialist to insure compliance with state
  and federal tax laws.
• CCs tax specialist will determine if all
  appropriate paperwork has been completed.

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Time saving tips to help expedite check
requests Presented by Penny
RainsAccounts Payable CoordinatorExt 6782
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Plan Ahead

• Allow a minimum of five (5) working days
• Days are counted from the time the requisition is
  received in the Business Office.
• Please be aware that problems with equipment,
  etc. can arise that will cause a delay of the
  check processing.
• Longer delays are commonly the result of not
  having requisitions completed properly or the
  lack of W-9 forms.

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Check request guidelines

• Two signatures are required.
• Complete required sections of requisition form.
• Make sure name and address are correct (dept
  addresses are okay).
• Attach supporting documentation ( 5 Ws Who,
  What, Where, When and Why)
• Payment for any Service (individual, group or
  company) must have a W9 form on file.

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Name and Address

• Please use full and proper names (no nicknames or
  initials).
• Please use middle initial for common last names.
• Please use correct mailing addresses.
• Use Remit to or Make check payable to
  addresses
• Checks for employees are sent to their
  departments
• Checks for the students go to their Worner Box.
• Can be mailed to home address if its requested.
  That address should be entered on the address
  line.
• Requesting special handling
• Complete address section like normal
• Document special handling in Special Instruction
  Box
• Unable to call when check is issued. Please
  look on GoWest.

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Separate checks and FOAPs

• All payments made payable to the same payee must
  be on one requisition.
• Separate check exceptions are
• Cash Advances
• When separate checks are required, please
  complete two requisitions and explain the reason.
• Multiple FOAPs can be used on each requisition.
• If you dont have room on the requisition, just
  attach a separate sheet.

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Supporting Documentation

• NO payments can be made using statements or
  quotations.
• Accurately (and briefly) describe reason for
  payment.
• Reference information printed on check advise
• Invoice
• 38 character summary of reason for payment
• (reimbursement, supplies for party, payment for
  T-shirts)

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View checks issued on GoWest

• Log into GoWest
• Finance Menu
• Transaction Detail
• Enter Organization
• Select Month to view
• Double click on desired transaction

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Go West and Payroll Information

• Presented By
• Heather Coles
• Payroll Coordinator
• Ext 6420

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Go West

• CCs secure site that houses employees
  information
• Pay stubs
• Leave Balances
• Addresses
• W4 with holdings
• Benefits

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Employee Information

• Please review this information and make sure that
  it is correct
• Address changes send to hr_at_coloradocollege.edu
• W4 changes send to payroll_at_coloradocollege.edu
• Benefit changes send to Kristen Pfeifer
  kpfeifer_at_coloradocollege.edu

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Future online features

• Leave reporting for Exempt employees
• W4 changes
• Benefits changes
• Pay Stubs

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Sustainability - Paperless

• We are considering eliminating printing direct
  deposit advices to ensure the security of your
  earnings and banking information, which is
  vulnerable in a paper form.  This also eliminates
  the costs associated with printing, distributing
  and mailing the paper form