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Information for Departments

Employees

When a department hires an employee who is not a U.S. citzen or permanent resident, all routine hiring processes should be completed with no delay. There is no requirement to have a Social Security number (SSN) at the time of hire for this group.  There is a policy exception (HR-105) for newly-arrived nonresident aliens (NRA). The Background Check is also waived for this group until such time as they receive their SSN.

During the "on-boarding" process, when the new NRA employee completes the I-9 and chooses "alien authorized to work," their citizenship status in PeopleSoft is locked to "nonresident Alien" and the W-4 withholding allowances are locked to "single,0."  The IRS requires this group to be taxed at the maximum amount possible until they document eligibility for other allowances.  It is during the "tax assessment" appointment that allowances may be updated.

The new employee will be contacted by the office of the MU NRA Taxation Specialist to schedule a "tax assessment" appointment as soon as possible after their hire, but the appointment cannot take place before the new employee recieves a Social Security Number. (This will be explained to the new employee in the initial email they receive from our office requesting a tax assessment appointment.)  During the appointment, W-4 allowances will be updated, as appropriate and the new employee will be provided general information about the U.S. tax system and programs for assistance with tax processes at Mizzou.

Non-Employees (honoraria, scholarship, prize, royalty)

Accounting will not process U.S.-sourced payments for nonresident aliens except those that are for a reimbursement of business-related travel expenses in accordance with the "accountable plan."

  • Most payments for activities that occur outside the U.S. are not  considered U.S.-sourced income.
  • Royalty and prize payments being made by MU are always considered U.S.-sourced, regardless of the location of the recipient of the income.  Often, recipients of royalty and prize income never come to the USA, so immigration status and arrival/departure information may not be relevant to this group.

Payments made to nonresident aliens other than employees and Financial Ais-processed scholarships must be submitted through the MU Nonresident Alien Taxation Specialist according to the instructions below.

For payments made to nonresident aliens (not US citizens or permanent residents) whose activities, for which the payment is being made, are occurring in the USA, the following general information is needed for each international visitor.  (If payment is being made for activities that occur outside the USA, no involvement of the MU Nonresident Alien Taxation Specialist is necessary - other than royalties or prizes. which are handled differently as discussed above.)

General Information Needed

From the inviting department: (sent by e-mail to the NRA Tax Specialist that should include the name of the incoming visitor in the subject line)

  1. Date of planned visit (US arrival and departure)
  2. Nature and duration of the activity (honoraria, scholarship, prize, etc.)
  3. Appointment time confirmed between the visitor and the MU Nonresident Alien Taxation Specialist. Note: Build 10-15 minutes in the visitor's campus schedule for this appointment.
  4. Form UM-376 (Non-employed alien PAF to get a job record into PeopleSoft)
  5. Draft of appropriate NEA Off-cycle Payment Request (NEA Payment forms Honorariums, Prizes, Royalties, Scholarships)
    • This should be returned to MU Nonresident Alien Taxation Specialist as an Excel spreadsheet email attachment, to allow changes by MU Nonresident Alien Taxation Specialist, e.g. if SSN is provided so treaty can be allowed or if department decides to gross-up payment. Note Leave EmplID blank if individual does not have student or employee record at the time the form is submitted
    • Department may choose to gross up payment to cover taxes if vistor does not have tax treaty exemption from withholding. 

Federal withholding on all payments other than scholarship is at 30% if not tax treaty exemption can be applied (noSSN/ITIN=no treaty benefits available). 1) Gross-up formula for 30% tax: multiply promised ammount by 1.428572; 2. Grossomh up creates a new income total that may require contract addendum

Scholarship withholding is at 14% for persons in F and J immigration status if no tax treaty exemption can be applied (no SSN/ITIN=no treaty benefits available). Gross-up formula for 14% tax: multiply promised amount by 1.16279.

6. Copy of signed contract (if required by UM Policy and Procedures) Note: contract should be negotiated in $US whenever possible

7. If an honorarium recipient is in J-1 research scholar status at another US institution, a copy of the letter from the visitor's Exchnge Visitor Program officer at the other institution is required. (This must be presented by the J-1 honorarium recipient prior to their activity at the University of Missouri.)


For the International VIsitor (this can be collected by the inviting department OR the department can provide contact information and MU Nonresident Alien Taxation Specialist will request information directly from the inclomming vistor.)

  1. Full name as it appears in passport
  2. Date of birth (month/day/year)
  3. US Social Security Number or ITIN, if available
  4. Country of citizenship
  5. Country in which living for at least one year prior to arrival in the USA for this (often, though not always, same as citizenship)
  6. Mailing address in home country
  7. E-mail address
  8. Passport number
  9. Passport expiration date
  10. Anticipated immigration status for this vist (may be under the visa waiver program as VWB-visitor for business)
  11. Date of planned arrival for this visit
  12. Date of intended USA departure after this visit
  13. Has the visitor been in the USA previously in F, J, M. or Q immigration status? If yes, need dates of arrival and departure for prior visits
  14. Photo copy of the passport biographical page (which can be sent prior to the visit or can be copied during during the "tax assessment" appointment)
  15. US form I-94 issued upon arrival to the USA (if one is issued - they recently stopped doing this for person arring under the visa waiver program)
  16. US entry stamp from the passport (which will not be available until after arrival)

Payment-Specific Information

Honorarium Recipients

During the "tax assessment" appointment scheduled by the department, necessary forms will be signed and copies of documents made for the MU NRA tax record.  We anticipate that the honorarium check will be available for the visitor at the time of the appointment.

Prize Recipients

Prizes and awards are always considered U.S. source income for NRAs, and withholding of U.S. taxes is required at 30% unless a tax treaty applies and the recipient has either a U.S. Social Security number or Individual Taxpayer Identification number (ITIN).

Scholarship Payments
  • Federal withholding on scholarship income for persons in F and J immigration status is 14% if a tax treaty exemption is not available.
  • Federal withholding on scholarship income for nonresidient aliens other than F and J immigration status is at the statutory rate of 30%.

Student Conference Travel Reimbursement

Students who are awarded a "travel grant" to attend a conference unrelated to their work at MU must have the reimbursement considered a taxable scholarship, as it does not fall under the "accountable plan" for employees.

  • Reimbursement to a student travelling to present MU research may fall under the "accountable plan" and would not be reported to the IRS as taxable income.
  • Reimbursement to a student travelling to a conference of their own choice for professional/personal development does not fall under the "accountable plan" and must be reported as taxable scholarship income.

Other Scholarship Recipients (payments made outside of Financial Aid)

Examples

      • Students not enrolled in the summer but receiving scholarship payments
      • Non students receiving scholarship payment (i.e. Miller's Scholar from the Math Department)
      • Federal withholding on scholarship income for persons in the F and J immigration status is 14%.

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Published by Human Resource Services, 1095 Virginia Avenue, Room 101, Columbia, Mo. 65211
Phone: 573-882-7976 | E-mail: muhrs@missouri.edu

Last updated: July 27, 2017