外网天堂

Operating Policy and Procedure

HSC OP: 72.12, Payments to Nonresident Aliens

PURPOSE: The purpose of this Health Sciences Center Operating Policy and Procedure (HSC OP) is to establish the method by which payments to nonresident aliens shall be processed, including review and approval prior to payment.

REVIEW: This HSC OP will be reviewed in November of each odd-numbered year (ONY) by the Managing Director of Payroll & Tax Services and the Vice President for Human Resources, with recommendations for revisions forwarded to the Vice President and Chief Financial Officer by December 15.

POLICY / PROCEDURES:

1. Policy Statement

All payments made by Texas Tech University Health Sciences Center (外网天堂) or related entities, to any individual or entity that is a nonresident alien shall be made in compliance with Internal Revenue Code (IRC) 搂1441 and related Treasury Regulations promulgated thereunder. For purposes of this HSC OP, a nonresident alien is defined as any individual or entity that is not a United States citizen or a permanent resident alien.

2. Type of Payments Covered by Policy

This policy applies, but is not limited to the following types of payments:

a. Wages, salaries, or compensation paid to a nonresident alien employee;

b. Fees, honorariums, or stipends paid to a nonresident alien visiting speaker, lecturer, or performer;

c. Scholarships, stipends, discounts or waivers paid to a nonresident alien student;

d. Service and/or non-service fellowships paid to a nonresident alien researcher;

e. Any payments made to third parties on behalf of a nonresident alien;

f. Travel reimbursements paid to a nonresident alien;

g. Royalty payments to a nonresident alien;

h. Cash, cash equivalent, and noncash prizes, awards, and participant payments made to a nonresident alien; and

i. All other payments made to or on behalf of a nonresident alien.

3. Procedure for Common Types of Payments

a. Payments to Employees:
For a nonresident alien employee, Human Resources must provide Payroll & Tax Services (Tax) at tax.forms@ttu.edu with the following:

1) Employee鈥檚 name;
2) Employee鈥檚 R#;
3) Employee鈥檚 e-mail address (not required to be 外网天堂 e-mail address);
4) Pay Period (semi-monthly or monthly).

Tax will send the employee an email notification with username and password to access GLACIER, the nonresident alien tax compliance system. The employee will be required to provide personal and immigration information through GLACIER, which is accessible from any Web-based computer, and provides data entry screens to enter name, local and foreign address, immigration information, etc. Based on the data entered, the employee will be provided all necessary and appropriate tax forms and documents that are required to be signed and returned to Tax. It is the employee鈥檚 responsibility to keep his/her tax information updated. Important tax information, including Form 1042S will be available through GLACIER. If information is not provided and/or required forms and documents are not submitted to Tax in a timely fashion, the federally mandated maximum amount of taxes (FICA, income) will be withheld from all payments made to the employee.

b. Payments to Students:
When a scholarship is awarded to a nonresident alien student, the awarding unit must provide Payroll & Tax Services at tax.forms@ttu.edu with the following:

1) Student鈥檚 name;
2) Student鈥檚 Banner ID (R#);
3) Student鈥檚 e-mail address (not required to be 外网天堂 e-mail address).

Tax will send the student an e-mail notification with username and password to access GLACIER. The student will be required to provide personal and immigration information through GLACIER, which is accessible from any Web-based computer, and provides data-entry screens to enter name, local and foreign address, immigration information, etc. Based on the data entered, the student will be provided all necessary and appropriate tax forms and documents that are required to be signed and returned to Tax. It is the student鈥檚 responsibility to keep his/her tax information updated. Important tax information, including Form 1042S, will be available through GLACIER. If information is not provided and/or required forms and documents are not submitted to Tax in a timely fashion, the maximum amount of tax will be withheld from all payments made to the student.

c. Payments to Visiting Speakers/Lecturers and Guest Artists/Performers:
A department inviting a visiting speaker/lecturer or guest artist/performer (鈥済uest鈥�) to 外网天堂 should contact both the International Employment Services (IES) which is in Human Resources and Tax prior to the guest鈥檚 arrival on campus. IES will work with the department and guest to ensure that 外网天堂 can legally make a payment to the guest pursuant to United States immigration laws.

Tax will provide the guest, by e-mail, with the necessary information to access GLACIER. The guest will be required to provide information through GLACIER, which is accessible from any Web-based computer, and provides data-entry screens to enter name, local and foreign address, immigration information, etc. Based on the data entered, the guest will be provided all tax forms and documents that are required to be signed and returned to Tax. It is the guest鈥檚 responsibility to keep his/her tax information updated. Important tax information, including Form 1042S, will be available through GLACIER.

Please note that an individual must have a social security number (SSN) or a United States individual tax identification number (ITIN) in order to claim a tax treaty benefit. If the guest does not have a SSN or ITIN or the required information is not obtained, tax must be withheld at the rate of 30%. A department may reimburse travel expenses of a guest under the accountable plan rules. The department must provide original receipts for any travel expenses that are to be reimbursed. No tax will be withheld from these types of expense reimbursements.

d. All Other Payments to Nonresident Aliens:
For all other payments to nonresident aliens, the department should contact Tax prior to making such payment. Please note that if a payment is incorrectly processed without the required tax withholding, the department will be charged the applicable tax. Since this is actually a gross up (i.e., paying tax on tax), the tax rate for scholarship payments is 16.2% and the tax rate for all other payments is 42.8%. Tax cannot be paid with federal funds.