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Comptroller's Office
Checklist for paying Nonresident Aliens as Independent
Contractors/Consultants
BEFORE THE INDIVIDUAL COMES TO SYRACUSE
UNIVERSITY
*Determine that the payment is one that can be treated as an
independent contractor/consultant and not employment. Please refer to the
paragraph on Consultants in the Human Resource section of the
Administrative Policy Manual, or contact the Office of Human Resources at
443-4565 with questions.
*If the individual is outside the U.S.,
contact the Slutzker
Center for International
Services at 443-2457, optimally two months before the visit, to
obtain a Prospective International Scholar Data Form. The Slutzker Center for International Services will
prepare an immigration document (DS-2019) which the NRA needs to obtain
the appropriate visa at the American consulate in his/her country.
*Once the individual has received the DS-2019 from the Slutzker Center
for International Services, application for U.S. Social Security Number
or Individual Tax Identification Number can be made at the U.S.
Consulate.
*If the individual is already in the United
States, sponsored by another
institution, contact the Slutzker
Center for International
Services for information about obtaining an authorization letter from the
sponsoring institution allowing Syracuse
University to pay the person.
WHEN THE INDIVIDUAL ARRIVES
*Does the person have a U.S. Social Security Number?
(Beware! A "Social Insurance Number" is not a valid number!)
If an international visitor is paid as an independent
contractor/consultant (or paid for participating in a conference or
seminar) he/she is considered "engaged in a trade or business."
Nonresident aliens deemed to be "engaged in trade or business"
are required to file a U.S.
Tax Return, Form 1040NR , or 1040NR-EZ. To
file any U.S. tax forms, a person must have a social security number or
an Individual Taxpayer Identification Number.
To obtain a Social Security number, apply at the Social Security
Administration, in the James M. Hanley Federal Building, 100 South
Clinton Street, in Downtown Syracuse. A valid passport, Form I-94 (small
white card attached to passport), and the pink copy of Form DS-2019 which
has been validated by U.S. Immigration at the Port of Entry. To obtain an
Individual Taxpayer Identification Number, apply at the Internal Revenue
Service Office, which is also in the Federal Building.
If no Social Security Number or Individual Taxpayer Identification
Number is provided by the Nonresident Alien, the University will withhold
30% Federal Tax. Although it is not a practice that is recommended by
the 'Comptroller's Office, Departments may choose to "gross up"
the payment and pay the back-up withholding. (Divide the desired net
amount by 70%.)
*Is the visitor from a country that has a Tax Treaty with the
United States? Contact the Comptroller's Office (443-2161) for current
tax treaty information.
IF NO, 30% Federal Tax will be withheld, if a Social Security
Number or an Individual Taxpayer Identification Number is provided. A W-8BEN
is required to be completed by the individual and submitted with the
request for payment. (To "gross up" divide
the desired net amount by 70%.)
IF YES, the Nonresident Alien must complete the Form 8233 so that
it may be submitted to the Comptroller's Office along with the Voucher. A
Social Security Number or an Individual Taxpayer Identification Number is
required for a Form 8233 to be accepted by the Internal Revenue Service.
The Form 8233 is
available on the IRS website. It can
be a photocopy or a faxed copy, but the signature must be original.
The W-8BEN
form is available on the IRS
website. It can be a
photocopy or a faxed copy.
*Complete the "Syracuse University Request for Payment of
Professional Services Rendered by Non-Employees" in full.
*Attach the completed W-8BEN form
or 8233 Tax Treaty Form to the "Syracuse University Request for
Payment of Professional Services Rendered by Non-Employees".
TIMING OF THE PAYMENT
The cutoff for having the form(s) in the Office of Human Resources is
no later than 10:30 a.m. of the 3rd workday preceding the workday for
which the check is desired. If "walking" a form through, please
wait for it to be audited in case there are problems. If leaving the
form, it is helpful to mark it with "RUSH"
and a contact person's name and phone number to be used in case of
problems. In the event that a pick up is necessary, the department will
be contacted when the check is ready. Checks are picked up at the
Comptroller's Office at Skytop. The person picking up the check is
required to provide identification and to sign for the check.
TAX REPORTING OF THE PAYMENT
After the calendar year ends, the Comptroller's Office will issue a
Form 1042S, mail it to the home address of the payee, and report the
payment to the Internal Revenue Service.
Nonresident Aliens who receive payments must file a United States tax
return using IRS form 1040NR or 1040NR-EZ. These
forms are available at calendar year end (January of each year) from the
Internal Revenue Service, and can be ordered by telephoning the IRS
toll free number 1-800-829-3676. By mail, send a request to the Eastern
Area Distribution Center, P.O. Box 25866, Richmond, Virginia 23286-8107
or Western Area Distribution Center, Rancho Cordova, California
95743-0001. Locally, the Slutzker Center
for International Services, the Public Library, and the IRS
Office in the Federal Building
often have the forms in stock from January 1
through April 30 each year.
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