Policies and Procedures
Procedure 1118.1 – Completing Tax Withholding Forms as a Foreign National Independent Contractor
August 18, 2009
August 24, 2009
Director of Payroll Services
When a foreign national is compensated for services other than wages, then they are classified as an independent contractor. Independent Contractors are required to complete forms other than the ones listed in Procedure 1122.1.
Forms and Instructions
Completion of the following forms is required by all foreign national independent contractors:
a. 1119.1.1f, Foreign National Information Form PR-100. Completed by foreign nationals to determine whether they are resident or nonresident aliens for tax purposes. This form also provides information to ensure proper tax withholding and reporting.
b. Form 8233, Exemption from Withholding on Compensation for a Nonresident Alien. Used by a nonresident alien to claim exemption from withholding on wages received from the University based on a U.S. tax treaty with the alien's country of residence.
c. Form W-9, Request for Taxpayer Identification Number and Certification. Provides the University with the correct taxpayer identification number of the resident alien payee and certifies that backup withholding rules do not apply. Form W-9 is also used by a resident alien to claim exemption from withholding on wages received from the University based on a tax treaty with the alien's country of resident.
d. Form W-8BEN, Documents that the nonresident alien is not subject to backup withholding rules, but does not exempt the payee from the 30% (or lower treaty) nonresident withholding rates.
Other Forms, Instructions, and Publications for Foreign Nationals from the Internal Revenue Service (IRS):
Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations
Publication 519, U.S. Tax Guide for Aliens
Publication 970, Scholarships and Fellowships
Form W-7, Application for Individual Taxpayer Identification Number
Form 1040NR, U.S. Nonresident Alien Income Tax Return
Instructions for Form 1040NR, U.S. Nonresident Alien Income Tax Return
Instructions for Forms 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and
1042-S, Foreign Person's U.S. Source Income Subject to Withholding
August 24, 2009