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Policies and Procedures

Procedure 1118.1 – Completing Tax Withholding Forms as a Foreign National Independent Contractor

Procedure Statement

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

Other publications, forms, and instructions provided by the IRS

Related Data

None.

History

Revised:
August 24, 2009