Type(s) of payment allowed
- Salary
- Honorarium (payment for services)
- Travel reimbursement
Documents required to process payments
- IRS Form W-8BEN for tax reportable payments.
- Immigration and taxation documentation outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart PDF)
- Refer to UW Policy 3023 -Payment for Services and Travel and Expense Reimbursement for Non-employees.
Forms required to process payments
All forms listed must be provided for each type of payment.
In order to make non-salary payments to individuals (i.e., an honorarium, travel reimbursement etc.), Accounting Services must have a copy of all immigration documents (I-94 and I-797, if applicable).
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Policy
If payment involves travel related expenses/reimbursements, please read and follow UW Policy 3023 -Payment for Services and Travel and Expense Reimbursement for Non-employees.
Travel Reimbursement
For campuses using eReimbursement (UW–Madison)
- Documented travel expenses must be processed through E-reimbursement. See UW Policy 3023 -Payment for Services and Travel and Expense Reimbursement for Non-employees.
- If payment involves travel related expenses/reimbursements, please read and follow UW Policy 3023 -Payment for Services and Travel and Expense Reimbursement for Non-employees.
For campuses not using eReimbursement
- Use a Payment to Individual Report (PIR).
- Immigration documentation required are outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart PDF).
- If payment involves travel related expenses/reimbursements, please read and follow UW Policy 3023 -Payment for Services and Travel and Expense Reimbursement for Non-employees. All of the policy applies except instead of using eReimbursement you use a PIR.
Honorarium
- Use a Payment to Individual Report (PIR).
- IRS Form W-8BEN for tax reportable payments.
- Immigration documentation outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart).
- Social Security Number, Individual Taxpayer Identification Number (ITIN), or copy of completed/signed/filed ITIN application required.
- Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, if tax treaty exemption applies. To determine if tax treaties apply, refer to Tax Treaties – Independent Contractors and Scholarships by Country and IRS Tax Treaty Table 1.
Tax liability/withholding
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Social Security
No FICA withholding since no employment is permitted.
Federal
Salary
- Contact your Dean’s Office Payroll Representative for additional documentation required for completing the I-9 Verification and other required documents to set up the employee on the Human Resources System (HRS).
- Documented travel expenses are considered business expenses of the UW and thus no federal tax is withheld.
- Honorariums (Payment for Services) require withholding of 30% federal tax, unless tax treaty exemption applies and Form 8233 is filed.
- Participant support, 14% withholding, unless tax treaty exemption applies and Form W-8BEN is filed.
Note: To determine if tax treaties apply, refer to Tax Treaties – Independent Contractors and Scholarships by Country and IRS Tax Treaty Table 1.
State
Salary
Contact your Dean’s Office Payroll Representative for additional documentation required for completing the I-9 Verification and other required documents to set up the employee on the Human Resources System (HRS).
Honorarium (Payment for Services)
None
Travel Reimbursement
None
Immigration questions
For student questions: International Student Services, iss.wisc.edu
For employee questions: International Faculty and Staff Services, ifss.wisc.edu