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Payments to Non-Residents

Payment to Nonresident Aliens: Honorarium/Guest Speakers

  1. Please submit a completed Foreign National Non-Compenstation Form [PDF] to the Office of Tax Compliance
  2. An email will sent from the Glacier™ Nonresident Alien Tax Compliance System to the payee, who must complete the online process and submit the required forms and documents to the Office of Tax Compliance before payments can be made.
  3. Nonresidents must complete the International Non-Compensation Form.

Required Documents

  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 Office of Tax Compliance before inviting a guest speaker or making payment arrangements with nonresident aliens.

Tax Withholding Rates for Nonresident Aliens

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%

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 ifthe 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. /p>

When filling out the Check Request, clearly write your contact information (phone and email) to ensure successful payment of the honorarium. Also indicate if the speaker has a SS#/ITIN. If the speaker has no number, there are two options:

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

Foreign Source Income (Nonresident Aliens Only)

Foreign source income refers to income earned by a nonresident alien, for services performed outside of the United States and is not subject to U.S. tax withholding and reporting. 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, they must complete the appropriate form below and submit it to the Office of Tax Compliance.

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.