Nonresident Alien Payments

Any payment being made to a nonresident alien requires special attention and handling. Because of the complicated tax laws and regulations for these payments we strongly request that you review the Nonresident Alien Policy and Procedures located on the Human Resources website and/or call Payroll (215-926-2242 or 7-2242) well in advance of making a payment request. Having the correct documentation will make the process much easier and faster.

Temple University is committed to ensuring full compliance with the tax laws. The reporting and taxation requirements of nonresident aliens are very complex. As such, this webpage will serve as a guideline for individuals and departments to enable all parties to meet their reporting and taxation requirements.

All payments made to or on behalf of a nonresident alien must be reported to the Internal Revenue Service(IRS). In addition, all payments are subject to federal income tax withholding unless they are specifically exempted by either U.S. tax law, or by an income tax treaty. (Note: there are tax treaties with over 40 countries, each of which is unique.)

Examples of payments made to nonresident aliens include, but are not limited to:

  • Wages/Compensation Scholarship
  • Stipends or Fellowships
  • Independent Contractor Payments Book Allowances
  • Consultant Payments Living Allowances
  • Honoraria Prizes/Awards
  • Royalties/Commissions

Note: Payments for Non-Resident Aliens must never be included on an electronic upload. All original paperwork must be submitted to Accounts Payable.

Requirements for Payment to a Non-Resident Alien

In order to make a payment to a nonresident alien, the individual must have a US social security number or a US ITIN (the only exception to this is for payments being made that are determined to be part of a "qualified scholarship"). Note: Payments do not have to be paid in cash; credits to a student's account on ISIS qualify under these requirements.

Each payment requires the review of certain key factors:

  • Visa Type
  • U.S. Residency Status (U.S. citizen, resident alien, nonresident alien)
  • Substantial Presence Test

Payments requiring federal income tax withholding are taxed at 14 percent, 30 percent, or graduated withholding rates depending on the type of payment.

The 1042S is the annual tax form that is used to report payments and tax withholding to nonresident aliens.

Tax-Exempt Non-Resident Aliens

If a non-resident alien is exempt from federal income tax withholding because of either U.S. tax law or a tax treaty, that individual must file the appropriate form:

  • Form 8233 - Compensation (independent contractors and employees) and related payments
  • Form W-8BEN – Scholarship, fellowship (no service), royalties and other payments

Announcements

Check Run Schedule Direct Deposits (ACH) are done daily and Disbursements (Paper Check Runs) are done on Monday, Wednesday and Friday each week.

TEMPLE ADMINSTRATIVE SERVICE BUILDING (TASB)

Temple University (083-07)
Accounts Payable Department
1852 N. 10th Street
Philadelphia, PA 19122-8307
Phone: (215) 926-2049
Fax: (215) 926-2022

 

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