Individuals on a Temporary Visa

Individuals on a Temporary Visa – General Information

Eligibility for an individual on a temporary visa to receive compensation from a U.S. source depends on the person’s visa status.  Prior to the completion of a contract or a commitment by the university, the following documentation must be provided to the International Tax Department at internationaltax@ecu.edu.

  • Visa status and country of residence of the contractor.
  • Tax ID, ITIN, or social security number, if available, or if eligible for a tax treaty.
  • If services are not to be performed in the U.S, provide a statement to that effect.
  • If the contractor is eligible for a tax treaty exemption submit the tax treaty form (IRS form W-8BEN) and International Visitor Information Form. (Both forms can be found on AP website under ECU Vendor Information Form)
  • Description of services to be rendered.

Additional information may be requested in order to determine eligibility for payment.

Compensation for independent personal services paid to individuals on a temporary visa is may be subject to 30% federal tax withholding, unless the amounts are covered by a tax treaty.  Eligibility for an individual on a temporary visa to use a tax treaty depends on the specific treaty between the U.S. and the home country, and the individual securing a social security number (SSN) or Individual Taxpayer Identification Number (ITIN).  Please note that compensation paid for services provided outside the United States by a nonresident alien may not be subject to 30% withholding, and not reported to the IRS.

Payments typically subject to 30% tax withholding include:

  • Fees or Honoraria for lectures, live performances, consultations or research.
  • Participation in scientific, educational, professional or business conventions, conferences or seminars.
  • Reimbursed living and travel expenses not supported by receipts.
  • Flat payments for living expenses.
  • Reimbursement for lost income.
  • Any other unspecified payments.

Payments not typically subject to 30% withholding include:  *

  • Reimbursed lodging and travel expenses which are supported by receipts. *
  • Per diem amounts for meals and incidentals only within the current government rates. *
  • Payments made directly to a vendor on behalf of the individual on a temporary visa for properly documented expenses other than living expenses. *

*Certain per diems, living or travel expenses, and other payments made to nonresident aliens, including students, as recipients of grants or awards, may be subject to applicable federal withholding.