Non-resident alien tax services
The tax compliance and Non-Resident Alien Taxation (NRAT) office is responsible for the review and approval process of transactions and payments for the University including related IRS withholding and reporting. The NRAT office provides assistance to international students and scholars, employees, guest speakers, consultants, independent contractors, foreign entities, UNR departments, and NSHE on issues related to NRAT, reporting, ITIN, tax forms, and treaty benefits.
NRA Policy and Procedures manual to help staff in understanding the complexity regarding payments to foreign individuals and companies. It is designed for UNR staff to direct foreign students, employees, consultants, guest speakers and independent contractors to the NRA office for assistance.
UNR Nonresident Alien Employees
We encourage our nonresident alien (NRA) faculty, staff members, scholars, graduate assistants, student works and any other employee contracts to come in and see the Nonresident Alien Tax Specialist (NRATS) as soon as they join UNR. U.S. taxation is a complicated subject matter and our office is here to provide assistance. The Internal Revenue Service (IRS) requires that we apply U.S. withholding and reporting rules consistent with nonresident aliens' U.S. tax status. NRA's may be entitled to tax exemptions depending on their U.S. tax status or an applicable tax treaty, or both. Since nonresident alien's immigration actions and U.S. presence may change the way NRA's are taxed, we request that NRA's provide us with up-to-date information to help us verify their status and any applicable tax exemptions. Without this information, we cannot provide NRA's with tax exemptions which might otherwise be applicable.
NRA Guest Speakers/Consultants/Independent Contractors
It must be understood that there may be restrictions on payments to certain foreign nationals. Depending on an individual's visa type and work authorization status, they might be prohibited from receiving payments, from receiving reimbursements or from having payments made on their behalf by the university. Even payments of genuine business expenses may be prohibited by immigration restrictions. It is strongly encouraged that departments understand these restrictions before offering honoraria or reimbursement of travel expenses to invited guests. It is important to determine a prospective speaker's visa and work authorization status before services are rendered.
The university is required to withhold on the compensation payment at a rate of 30%, although this rate may be reduced or eliminated if there is an income tax treaty between the United States and the foreign individual's country of residence. Consult with NRATS regarding treaty exemptions. An honorarium will be paid in accordance with immigration and IRS requirements. An honorarium paid to a foreign speaker will be treated as compensation for services and will be subject to income tax withholding and reporting. Reimbursement or direct pay of travel expenses in accordance with immigration and IRS requirements. An expense payment made to a foreign speaker will not be considered to be income and will not require withholding or be reportable, provided that the speaker: performs a service for the university (i.e. delivers a speech, lecture, etc.) and substantiates any expenses.
Tax information by employee type
We encourage all new NRA employees to register for a New Nonresident Alien Employee Orientation offered through as soon as they arrive at the university.
NRAT Office recommends departments process NRA employees' paperwork with a SINGLE-ZERO W-4 form prior to the new employee attending the New Nonresident Alien Employee Orientation. It will help facilitate processing new hire paperwork and prevent delays.
Nonresident alien (NRA) Student Athletes usually receive nonqualified scholarship payments regularly. Nonqualified scholarships are taxable, unless there are any treaty benefits applicable. Tax rates on the nonqualified scholarships to NRA's are as follows:
- 14% for F, J, M, and Q students
- 30% for other students
- 30% for recipients without their immigration status being substantiated.
Our office encourages all NRA Student Athletes to come in to confirm their immigration status and reduce the amount of withholding tax, if possible.
NRA Student Athletes are required to brining in the following documents to their initial appointment:
- FNIS data sheet - completed, signed, and dated (FNIS)
- Passport
- Visa stamp
- I-94
- I-20 or DS-2019
- Social Security Card (or, the Social Security Number application receipt letter, if you have has just applied for one) or Individual Tax Identification Number (ITIN).
To be eligible for any treaty benefits, NRA Student Athletes may need to obtain an ITIN in order to take advantage of any available treaty benefits, unless they already have a SSN or an ITIN issued. As a Certifying Acceptance Agent, UNR's Business and Finance Office or the Office of International Students and Scholars can assist NRA Student Athletes in obtaining an ITIN from the IRS.
A-1/A-2 aliens are employees of foreign governments. They are authorized to work for their sponsoring government only. For example, if an A-1 individual engages in an activity, it is only to carry out his/her government's diplomatic mission under the direction of his/her government. Without permission from the State Department's Protocol Division and USCIS, they are not allowed to receive any compensation for non-diplomatic services.
When A individuals are authorized as mentioned above, following documents are required before making any payments:
- FNIS data sheet - completed, signed, and dated.
- Valid passport - including but not limited to the front biography page and the corresponding U.S. entry stamp.
- Visa stamp - not applicable to Canadian citizens.
- I-94 - front and back.
- Written permission from the State Department's Protocol Division and USCIS.
- Guest Speaker Form or Independent Contractor Agreement Form- completed, signed, and dated with W-8BEN attached.
A remuneration paid to or on behalf of an NRA is subject to a 30% withholding tax on the gross amount and will be reported on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. NRA's in A status may need to obtain a SSN or an ITIN in order to take advantage of any available treaty benefits.
Under the B honorarium rules, B-1 nonimmigrant aliens may accept honoraria and be reimbursed for incidentals from the university the following conditions are met:
- The usual academic activities will last no longer than nine (9) days at UNR
- Such activities are conducted for the benefit of UNR
- The visitors have not accepted such payments or expenses from five (5) other institutions during the previous six (6) month period.
Since there are restrictions and complications, our office recommends the visitors seek admission under the B-1 visa or the corresponding WB (Visa Waiver/Business), not the B-2 visa or its corresponding WT (Visa Waiver/Tourist).
Our minimum documentation requirement for B honorarium payments includes:
- FNIS data sheet - completed, signed, and dated (FNIS)
- Valid passport - including but not limited to the front bio page and the page with corresponding U.S. entry stamp
- Visa stamp - not applicable to Canadian citizens or citizens of the countries participating in the Department of State Visa Waiver Program
- I-94 - front and back
An honorarium paid to or on behalf of an NRA is subject to 30% withholding tax on the gross amount and will be reported on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. NRA's in B-1 status may need to obtain an ITIN in order to take advantage of any available treaty benefits.
F-1 students are not authorized for self-employment unless they have an OPT EAD and using it for their fields of study, have a hardship-based EAD, or if the services are related to their sponsoring institution's academic program. It must be communicated and approved by the sponsoring institution prior to the engagement. A payment could be made to the sponsoring institution, who then will pay the F-1 students.
Our office discourages departments from engaging in any activities with F-1 students who are sponsored by another institution unless one of the three exceptions discussed above applies.
When making payments to F-1 students with OPT or hardship-based EAD's, following documents are required:
- FNIS data sheet - completed, signed, and dated (FNIS)
- Valid passport - including but not limited to the front bio page and the page with corresponding U.S. entry stamp
- Visa stamp - not applicable to Canadian citizens
- I-94 - front and back
- I-20
A remuneration paid to or on behalf of an NRA is subject to a 30% withholding tax on the gross amount and will be reported on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. NRA's in F status may need to obtain a SSN or an ITIN in order to take advantage of any available treaty benefits.
When the services are related to their sponsoring institution's academic program and it has been communicated and approved by the sponsoring institution prior to the engagement, a payment will be made to the sponsoring institution:
- Prior written agreement with the sponsoring institution
- Request for Payment or Purchase Requisition Worksheet with W-9 attached.
Since the payment is to the sponsoring institutions, the sponsoring entities are responsible for meeting any withholding requirements associated with the payments to nonresident aliens.
G-1/G-2/G-3/G-4 aliens are representatives of international organizations. They are authorized to work for the sponsoring organization only. Without permission from the State Department's Protocol Division and USCIS, they are not allowed to receive any compensation for non-diplomatic services.
When G individuals are authorized as mentioned above, following documents are required before making any payments:
- FNIS data sheet - completed, signed, and dated (FNIS)
- Valid passport - including but not limited to the front bio page and the page with corresponding U.S. entry stamp
- Visa stamp - not applicable to Canadian citizens
- I-94 - front and back
- Written permission from the State Department's Protocol Division and USCIS
A remuneration paid to or on behalf of an NRA is subject to a 30% withholding tax on the gross amount and will be reported on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. NRA's in J status may need to obtain a SSN or an ITIN in order to take advantage of any available treaty benefits.
H-1B aliens may only work for their sponsoring U.S. employers and only within the scope of the H-1B activities described in their petition. H-1B aliens should not undertake unauthorized self-employment activities and UNR should not use services performed by an alien unauthorized to execute them.
Our office strongly discourages departments from engaging any activities with H-1B aliens who are sponsored by another entity, unless it is approved by the other sponsoring entities prior to the engagement. In such cases, UNR will make a payment to the sponsoring entities, who will pay the H-1B aliens.
Following documents are required in processing payments to H-1B sponsoring entities:
- Prior written agreement with the H-1B sponsoring entity
- Request for Payment or Purchase Requisition Worksheet with W-9 attached.
Since these are payments to corporations, the sponsoring entities are responsible for meeting any withholding requirements associated with the payments to nonresident aliens.
When nonimmigrant aliens engage in activities that do not meet the B-1 honorarium rules, a J-1 Exchange Visitors visa or an H-1 Temporary Work visa is required. Contact UNR's Office of International Students and Scholars for complete information on sponsoring J-1 Exchange Visitors.
Following documents are required in processing payments to J-1 visa Exchange Visitors who are sponsored by UNR:
- FNIS data sheet - completed, signed, and dated (FNIS)
- Valid passport - including but not limited to the front bio page and the page with corresponding U.S. entry stamp
- Visa stamp - not applicable to Canadian citizens
- I-94 - front and back
- DS-2019
If the J-1 Exchange Visitors are sponsored by another institution and are engaging in occasional lectures or short-term consultations in their field, they must supply an additional document:
Prior written approval from their Responsible Officer (RO) or their Alternative Responsible Officer (ARO) designated by their program sponsor.
Designated RO/ARO can be located in item #2 on the J-1 Exchange Visitors' DS-2019.
A remuneration paid to or on behalf of an NRA is subject to a 30% withholding tax on the gross amount and will be reported on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. NRA's in J status may need to obtain a SSN or an ITIN in order to take advantage of any available treaty benefits.