Payments to Foreign Employees
Wages for Students and Trainees (Income code 20)
- Based on country of residence, NOT country of citizenship. Country of residence is determined by location 365 days prior to coming to the US. If there is a dispute in country of residence, tax treaty benefits will not be honored
- Must be a student or trainee, as indicated on I-20 or DS-2019
- Exemption of tax treaty begins the YEAR of arrival
- Typically a dollar limit and a year limit (exceptions: China, Bangladesh)
- Treaty is taken on form 8233 and Student Attachment (if a Resident for Tax, treaty is taken on form W-9 and W-9A)
- Tax treaty is effective on next available payroll, taxes already withheld will not be refunded
- Tax treaty benefits will not be honored without a permanent Social Security Number (SSN)
- All Tax treaty forms must generated by Sprintax Calculus, e-signed in the site and submitted in Workday under 'Worker Documents'
- Click here for country list.
Wages for Teacher/Researchers (Income code 19)
- Based on country of residence, NOT country of citizenship. Country of residence is determined by location 365 days prior to coming to the US. If there is a dispute in country of residence, tax treaty benefits will not be honored
- Must be a professor, teacher or researcher
- Must be temporarily in the US for the primary purpose of teaching/research
- Exemption of tax treaty begins the DATE of arrival
- Typically a year limit only
- Treaty is taken on form 8233 and Teacher/Researcher Attachment (if a Resident for Tax, treaty is taken on form W-9 and W-9A)
- Tax treaty is effective on next available payroll, taxes already withheld will not be refunded
- Tax treaty benefits will not be honored without a permanent Social Security Number (SSN)
- All Tax treaty forms must generated by Sprintax Calculus, e-signed in the site and submitted in Workday under 'Worker Documents'
- Click here for country list.
Scholarship and Fellowship Payments (Income code 16)
- Based on country of residence, NOT country of citizenship. Country of residence is determined by location 365 days prior to coming to the US. If there is a dispute in country of residence, tax treaty benefits will not be honored
- Must be in the US to study or acquire training/technical experience
- Exemption of tax treaty begins the YEAR of arrival
- Typically a year limit only
- Treaty is taken on form W-8BEN. Country list is located on Page 2 of W-8BEN
- Tax treaty will not be honored without a permanent Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- To receive stipend/fellowship, individual must complete form W-8BEN. However, if the individual does not have an ITIN or SSN at that time, and receives a permanent number and is from a tax treaty country, the individual MUST complete a new W-8BEN form to have the tax treaty honored. Once a new W-8BEN is received (with tax number) any scholarship or fellowship tax withholding for the calendar year will be refunded on the next biweekly payroll
Payments to Foreign Independent Contractors (Income code 16)
- Based on country of residence, NOT country of citizenship. Country of residence is determined by location 365 days prior to coming to the US. If there is a dispute in country of residence, tax tretay benefits will not be honored
- Treaty is taken on form 8233 only
- Treaties can be limited by days of presence or dollar limit
- Tax treaty benefits will not be honored without a permanent Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Tax treaty documents must be on file at the time of payment. No taxes will be refunded
- All Tax treaty forms must generated by Sprintax Calculus, e-signed in the site and submitted on the ePayment request
- Click here for country list.