University of Washington Policy Directory

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*Formerly part of the University Handbook
Administrative Policy Statement
32.4.2


Guide for Payments to Nonresident Aliens

(Approved by the Executive Vice President by authority of Executive Order No. 5)



2.  Procedures for Processing Requests for Payments to Nonresident Aliens Performing Services as an Independent Contractor

  a. Performance of Personal Services Only (Including Honorarium)
    1) Nonresident Alien Eligibility—The department determines that an individual is a nonresident alien for tax purposes and is eligible for this type of compensation by comparing the individual's nonimmigrant visa classification with the table in Section 1.a.
    2) Independent Contractor Status—The department establishes that services are being provided by an independent contractor by completion of an Employee Versus Independent Contractor Classification Checklist form.

Note: A person responsible for teaching a regular University course must be appointed as an employee and may not be classified as an independent contractor.
    3) Aliens From a Country With a Tax Treaty—The department determines whether the alien is from a country having a tax treaty with the United States, and if so, obtains an Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, IRS form 8233. The form should be completed by the alien (preferably prior to arriving at the University) and returned to the Accounts Payable Office, Attn: NRA Desk, Box 351130, by the sponsoring department.

Note: If the nonresident alien is claiming exemption from taxes under the provision of a tax treaty, the Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, IRS form 8233, is not effective (by law) until ten days after submission of the form to the IRS. Therefore, the first payment that may be exempted from withholding must be made a minimum of 15 days after the date the form is received by the Accounts Payable Office. If the form is not submitted to the Accounts Payable Office, or cannot be filed within the required time frame with the IRS, withholding from the payment will be imposed at the 30% withholding rate.

    4) Acquiring Personal Services—The department submits a purchase requisition to initiate or confirm acquisition of personal services (Object Code 02–90), together with associated travel costs (Object Code 03–20), from a nonresident alien independent contractor. Include a note in the "Comments" field of the purchase requisition stating that the services are being obtained from a nonresident alien.

Note: The original Employee Versus Independent Contractor Classification Checklist form must be submitted as an attachment to the purchase requisition.

    5) Determining Tax Withholding Requirements—Upon the nonresident alien's arrival at the University, the sponsoring department assists the individual in completing the Nonresident Alien Payment Data Sheet form to provide necessary information for the University to determine tax withholding requirements. The completed form, together with the required attachments, must be submitted to the Accounts Payable Office, Attn: NRA Desk, Box 351130, before payment will be released.
    6) Submitting an Invoice—The department obtains and submits an invoice citing the appropriate purchase requisition number for services performed to the Accounts Payable Office, Attn: NRA Desk, Box 351130. If payment is for an honorarium, or if the visitor does not have his or her own invoice form, the department prepares an Invoice Voucher/Receiving Report form and submits it to the Accounts Payable Office, Attn: NRA Desk, Box 351130.

  b.  Performance of Personal Services (Including Honorarium) and Reimbursement of Associated Travel Expenses
    1) Nonresident Alien Eligibility—The department determines that an individual is a nonresident alien for tax purposes and is eligible for this type of compensation by comparing the individual's nonimmigrant visa classification with the table in Section 1.a.
    2) Independent Contractor Status—The department establishes that services are being provided by an independent contractor by completion of an Employee Versus Independent Contractor Classification Checklist form in accordance with Administrative Policy Statement 32.3.

Note: A person responsible for teaching a regular University course must be appointed as an employee and may not be classified as an independent contractor.
    3) Aliens From a Country With a Tax Treaty—The department determines whether the alien is from a country having a tax treaty with the United States, and if so, obtains an Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, IRS form 8233. The form should be completed by the nonresident alien (preferably prior to arriving at the University) and returned to the Accounts Payable Office, Attn: NRA Desk, Box 351130, by the sponsoring department.

Note: If the nonresident alien is claiming exemption from taxes under the provision of a tax treaty, the Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, IRS form 8233, is not effective (by law) until ten days after submission of the form to the IRS. Therefore, the first payment that may be exempted from withholding must be made a minimum of 15 days after the date the form is received by the Accounts Payable Office. If the form is not submitted to the Accounts Payable Office, or cannot be filed within the required time frame with the IRS, withholding from the payment will be imposed at the 30% withholding rate.

    4) Acquiring Personal Services—The department submits a purchase requisition to initiate or confirm acquisition of personal services (Object Code 02–90), together with associated travel costs (Object Code 03–20), from a nonresident alien independent contractor. Include a note in the "Comments" field of the purchase requisition stating that the services are being obtained from a nonresident alien.

Note: The original Employee Versus Independent Contractor Classification Checklist form must be submitted as an attachment to the purchase requisition.

    5) Determining Tax Withholding Requirements—Upon the nonresident alien's arrival at the University, the sponsoring department assists the individual in completing The Nonresident Alien Payment Data Sheet form to provide necessary information for the University to determine tax withholding requirements. The completed form, together with the required attachments, must be submitted to the Accounts Payable Office, Attn: NRA Desk, Box 351130, before payment will be released.
    6) Submitting an Invoice—The department obtains and submits an invoice citing the appropriate purchase requisition number for services performed, or for associated travel expenses, to the Accounts Payable Office, Attn: NRA Desk, Box 351130. If payment is for an honorarium, or if the visitor does not have his or her own invoice form, the department prepares an Invoice Voucher/Receiving Report form and submits it to the Accounts Payable Office, Attn: NRA Desk, Box 351130.