Audit & Tax

Payments to foreign visitors who are not SDSU employees include, but are not limited to:

• Honoraria paid to guest speakers, special lecturers, distinguished visitors
  
  
• Compensation paid to consultants, performers, and other non-employees
  
  
• Travel expense reimbursements

Payment Process

1. Contact Audit & Tax staff prior to inviting a foreign visitor. Audit & Tax staff will determine whether the visitor is authorized to perform services without jeopardizing the visitor's immigration status.

2. Once it is determined that the visitor is authorized to perform services, collect the following documents from the visitor and submit to Accounts Payable.

• Payment Request for Guest / Special Lecturer  (For honorarium) or Invoice/Purchase Order (For other payments for services)
  
  
• Supplier Payment Data Record 
  
  
• Foreign National Information Form 
  
  
• Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (Form W-8BEN) 
  
  
• Copy of passport page with expiration date and visitor's picture
  
  
• Copy of I-94 (a small card stapled inside the passport)
  
  
• Receipts for travel expenses (except for per diem) – TRAVEL EXPENSE REIMBURSEMENT ONLY

Nonresident Alien Payment Checklist 
Use this checklist to make sure all the required documents are obtained from the visitor before submitting to Accounts Payable.

Federal Tax Withholding

Generally, these payments are subject to 30 percent federal withholding unless an income tax treaty is applicable. This should be taken into consideration when determining the honorarium amount.   

Tax Treaty

Residents (not always citizens) of certain foreign countries may be exempt from federal withholding under the applicable tax treaty between the U.S. and their country of residency.

To claim a tax treaty benefit, a foreign visitor must:

• Be eligible, and
  
  
• Sign Form 8233 for the year in which the service was performed (Audit & Tax staff will provide Form 8233)

State Tax Withholding

The payment may also be subject to 7 percent state withholding when the amount exceeds $1,500. This should be taken into consideration when determining the honorarium amount.

Travel Expense Reimbursements

There will be no withholding when the payment is a travel expense reimbursement made under an accountable plan. The requirements for the travel expense reimbursements can be found in the Accounts Payable, Travel Manual.

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