Payments to Nonresidents

Payments to Nonresidents: Honorarium/Guest Speaker

  1. Please complete the Foreign National Non-Compenstation Form
  2. Once completed please return to the Tax Office, an email will be generated and sent from support online-tax.net to the individual.
  3. The individual must complete the online process and submit the required forms and documents to the Tax Office before payments can be made.
  4. Nonresidents must Complete the International Non-Compensation  Form

Required documents maybe:

  1. Passport page
  2. Visa & I-94 (Canadians Exempt)
  3. SSN Or ITIN if available

Payments cannot be made to an Individual who has an H1-B visa for another sponsoring institution.  It is imperative that you verify with the Tax office before inviting a guest speaker or making payment arrangements with Nonresident Aliens.

Tax Withholding Rates for Nonresident Aliens: Check request payments 

Scholarships/Fellowships   
(F, J, M and Q immigration statuses)  
14%
Scholarships/ Fellowships (All other immigration statuses) 30%
Independent Personal Services   30%
Royalties     30%
Prize/Awards            30%

                                  

Guest Speakers | Foreign Source Income | Consultants

Visiting scholars who enter the U.S. on a B-1 Visa may not perform "employment" services in the U.S.. This includes consulting services paid as an independent contractor.

However, a B-1 Visitor may be paid an honorarium for usual academic activities. The following conditions must be met:

  • The services must be conducted for the benefit of Drexel University or Drexel University College of Medicine
  • The activities will not last longer than nine days
  • The individual has not accepted such payments for expenses from more than five institutions or organizations in the last six months (the 9/5/6 B Honorarium Rule).

 

Guest Speakers

All honorariums are taxable with the following exception: the speaker has a social security number or International Taxpayer Identification Number (ITIN) AND is from a country with a tax treaty. If the speaker is from a country with a tax treaty but does not have a social security number/ITIN, they can apply for an ITIN from the IRS. Please refer to the IRS website at www.irs.gov.

When filling out the Check Request, please clearly write your contact information (phone and email) as clear correspondence is essential for the successful payment of the honorarium. Also, please indicate if the speaker has a SS#/ITIN. If the speaker has no number, there are two routes we can take:

  1. 30% tax will be deducted from the honorarium payment
  2. The guest speakers can apply for an ITIN from the IRS (time consuming).

Foreign Source Income(Only for Nonresident Aliens)

Foreign source income refers to income earned by a Nonresident Alien, for services performed outside of the United States. Foreign Source is not subject to U.S. tax withholding and reporting for Nonresidents. The source of the compensation is determined by the location of the activity.

If you wish to pay a foreign national for services performed outside of the United States, the foreign national must complete the appropriate form below and submit to the tax office.

Drexel University form
Drexel College of Medicine form
The Academy of Natural Sciences


Consultants

A foreign national receiving a consulting fee is subject to 30% U.S. tax withholding unless both of the following conditions exist:

  • They are from a country with a tax treaty that exempts compensation for independent personal services and,
  • They have a U.S. social security number (SSN) or an individual tax identification number (ITIN).

Foreign nationals doing consulting in the U.S. must have the appropriate visa. B-1 Visas or WB (Waivers for Business) are not appropriate visas for independent consultants.