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Controller's Office

International Taxation and Payments to Non-Resident Aliens

Introduction

There are many IRS rules and US tax treaties that effect how payments can be made to non-resident alien individuals who receive payments while they are in the US.  These could be payments for services performed by employees or independent contractors or scholarship payments to students.  This payment information is reportable on either a W-2 or 1042-S tax form.  The university has purchased third-party software to facilitate these payments and reporting obligations.  In addition, every country has its own tax laws that apply to individuals performing services outside of the US.   

 

Payments to Non-Resident Aliens and 1042-S Reporting

Payroll Services has a section on its web page devoted to questions about paying non-resident aliens (foreign nationals) and 1042-S reporting.

Payroll Frequently Asked Questions

 

International Taxation

It isn’t possible to catalog all of the foreign tax rules that apply when the university pays foreign individuals performing services outside of the US.  Departments who plan on spending significant amounts of money overseas should consult with an outside tax consultant who is familiar with the tax laws of the country where the money is being spent.  Tax Services can be of assistance if you require an outside foreign tax specialist.