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 DS-2019, I-797 or I-20 whichever is 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.
Participant Support
- 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 W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, if tax treaty exemption applies. Treaty must include a provision for Scholarship/Fellowship Grants.
- 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 immigration questions, go to Terra Dotta.