INFORMATION FOR GEORGE MASON UNIVERSITY DEPARTMENTS

Procedures For Payments Or Benefits To Foreign Nationals

Employment

Other Compensation

Expense Reimbursements

Students Receiving Scholarship, Fellowship or Award

A Do's and Don'ts Primer for Payments to Foreign Nationals

EMPLOYMENT

The rendering of services on either a part-time or full-time basis
for compensation, financial or otherwise

Procedure - All employees must:

1. Apply for a Social Security Number if they do not have one, as follows:

   Bring passport, proof of immigration status, and job offer letter/s to SSA per instructions to be provided by OIPS. SSA's requirements change frequently so specific guidance is not provided herein

   Complete Form SS-5 at SSA office

2. Complete Form I-9, Department of Justice form used to verify employment eligibility, at OIPS. Continuing workers need re-validated I-9 from OIPS prior to department initiating a new Electronic Approval.

   I-9 can only be completed upon presentation of original documents showing proof of identity and proof of employability.

   Permanent residents (PR) do not need to come to OIPS for any services except for first I-9 as PR if previously employed or studying at GMU in another status.

3. Complete Foreign National Information Form, W-4 and state withholding form (part of OIPS-provided tax packet), then make an appointment to meet with the Tax Coordinator to review. All immigration documents need to be brought to the appointment.


4. If eligible, complete IRS Form 8233 to take advantage of tax treaty benefits (can eliminate or reduce federal tax withholding).

Packets containing all relevant forms are available in OIPS. I-9s may be completed during OIPS walk-in hours, but appointments must be made to meet with the Tax Coordinator. ALL payees should bring their original immigration documents with them to appointments with the Tax Coordinator.

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OTHER COMPENSATION

Independent contractors, e.g. guest lecturers, short-term research collaborators,
etc. receiving non-employee compensation (honorarium)

Procedure -

1. Departments should contact OIPS well in advance of arrival to discuss length of activity, appropriate immigration status, and what can or cannot be paid.
2. Payees must arrange an appointment to meet with the Tax Coordinator. They will need to bring immigration documents to OIPS for verification of status.
3. Do not need to complete an I-9 form
4. May not qualify for an SSN. Treaty-eligible payees will need to apply through OIPS for Individual Taxpayer Identification Number (ITIN), using IRS form W-7, if no SSN available. If not treaty-eligible, must apply for ITIN when they file U.S. tax return the following year.
5. Complete Foreign National Information Form in OIPS.
6. If eligible, complete form 8233 for tax treaty benefits
7. If payment is for a visitor in B-1 (visitor for business), B-2 (visitor for tourism), VWB or VWT (waiver for business or tourism), a statement must be executed and signed by the visitor, attesting that their independent services at GMU did not exceed 9 days and that they have not received more than 5 similar payments from U.S. institutions in the prior six months.
8. Department sends documents requesting payment, along with completed Employee/Independent Contractor Evaluation Form, to Tax Coordinator for verification and signature. Request will be forwarded to Sponsored Programs or Accounts Payable as appropriate.

New proposed INS rules require that an individual who enters the U.S. with the intention of receiving an honorarium or expense reimbursement enter the U.S. in business status (B-1 or VWB). Individuals who enter the U.S. in tourist status (B-2 or VWT) can only receive such payments if the income-providing opportunity arises AFTER they have entered the U.S. OIPS suggests that ALL short-term visitors request to be admitted in business status to avoid complications.

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EXPENSE REIMBURSEMENTS

Reimbursements of travel expenses for travel to GMU to participate in an academic or business function. Payments are generally not reportable or taxable if properly documented and accounted for in accordance with GMU's travel policy, and if expenses are incurred while conducting business on behalf of GMU For travel grants for students or conference participants, see "Students Receiving Scholarship, Fellowship, or Award"

Procedure -

1. Departments should contact OIPS well in advance of arrival to discuss length of activity, appropriate immigration status, and what can or cannot be paid.
2. If feasible, arrange an appointment to meet with the Tax Coordinator. They will need to bring immigration documents for verification of status. In cases of reimbursement only, it may be possible to skip the tax appointment if department is willing to collect certain documents and copies of immigration documents. This can be discussed with the Tax Coordinator during initial contact in item 1 above.
3. If payee is in the U.S. as a student or employee at another university or organization, they need to complete Foreign National Information Form and meet with Tax Coordinator.
4. If payment is for a visitor in B-1 (visitor for business), B-2 (visitor for tourism), VWB or VWT (waiver for business or tourism) status, a statement must be executed and signed by the visitor, attesting that their independent services at GMU did not exceed 9 days and that they have not received more than 5 similar payments from U.S. institutions in the prior six months. Individuals in B-1 or VWB status whose activities exceed 9 days but are still eligible for expense reimbursements must sign a statement attesting that their stay in the U.S. will not exceed 12 months. Remember that B-2 or VWT individuals over 9 days are not eligible for ANY payments related to services rendered.
5. Department sends documents requesting and substantiating expense reimbursement along with substantiation to Tax Coordinator for verification and signature. Request will be forwarded to Sponsored Programs, Travel or Accounts Payable as appropriate.
6. Those on B-1/B-2/WB/WT visa may receive reimbursement of travel expenses in lieu of honoraria (less paperwork and faster, but must provide travel receipts. B-2 and WT visitors are subject to time and frequency restrictions mentioned previously.)

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STUDENTS RECEIVING SCHOLARSHIP, FELLOWSHIP OR AWARD

A bona fide scholarship or fellowship for tuition is neither taxable nor reportable if credited directly to a student's account. However, a scholarship or fellowship for room, board or other incidental expenses, including those to defray expenses for conference participants, or for tuition that is paid directly to the student, is reportable and, in most cases, taxable (e.g. student athletes, exchange students). The same applies to awards (i.e. for academic merit).

Procedure -

1. International student completes Foreign National Information Form and makes appointment to meet with Tax Coordinator to review.
2. If no SSN, must apply for SSN or ITIN for tax purposes.
3. Department sends Request for Scholarship/Fellowship form with a copy of the award letter to Tax Coordinator for review and signature. Request will be forwarded to Sponsored Programs or Accounts Payable as appropriate.

Please note that scholarships and fellowships are, by definition, NON-COMPENSATORY. They are provided without the expectation of the grantee providing services in return. Failure to correctly categorize a payment results in the incorrect tax treatment and leaves the University at risk for financial and legal penalties.

Also, individuals receiving an honorarium, scholarship, fellowship or award, regardless of the amount, should be informed by the department that they will most likely need to file a U.S. income tax return to claim the income, even if they will not owe any additional taxes or will be due a refund. They should also be advised that GMU is required to withhold 30% of the payment unless a tax treaty applies. For individuals in F, J, M or Q immigration status, the 30% rate is reduced to 14% on scholarships and fellowships, but NOT on awards. Payees should be referred to IRS Publication 519, available at www.irs.gov, for details.

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A Do's and Don'ts Primer for
Payments to Foreign Nationals

• DO contact OIPS with questions regarding the appropriate immigration status, payment possibilities, acceptable duration of activity, etc. for anyone to whom you wish to make a payment before you make any promises. An ounce of prevention is worth a pound of damage control.
• DON'T promise payment or employment to someone without making it contingent upon their acquiring an immigration status that allows them to receive the payment from or be employed by GMU. For example, a J-1 researcher on Villanova's DS-2019 is NOT automatically eligible to receive an honorarium for lecturing at GMU.
• DO be certain to properly classify the type of income you pay someone. A fellowship, for example, is non-compensatory by definition. If you require services in return for a payment or other financial benefit (i.e. tuition waiver), it is not a fellowship; it is compensation and must be paid, taxed, and reported as such.
• DON'T complete I-9s, W-4s or state withholding documents in the department. These must be done at OIPS.
• DO carefully consider how you assign job codes. Each job code has inherent assumptions that affect our employees (i.e., an adjunct is always FICA taxed, whereas a "student worker" may only be FICA taxed during the summer).
• DON'T let the bureaucracy put you off - OIPS is here to help both you and our international visitors, but complying with regulations is the only way we can do our jobs well.

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Inviting a Short-Term (B-1/VWB) Visitor to GMU

In many cases, departments wish to invite an international visitor to campus for a very brief period of time. Examples include giving a single lecture or participating in two or three days' worth of research collaboration. In such cases, it is most appropriate for the individual to come to the U.S. as a business visitor (B-1 or VWB status), assuming they are not already in the U.S. in another status. This option does not require advance paperwork from OIPS (i.e. the DS-2019 form for a J-1 short-term scholar), and depending on the individual's country of citizenship, may not even require a visa.

Honoraria and Expense Reimbursements

Individuals who enter the U.S. as business visitors are potentially eligible to receive honorarium payments and expense reimbursements, provided that the payment is made in connection with a "usual academic activity" lasting no more than 9 days, and that the individual has not received similar payments from more than 5 U.S. institutions in the prior six-month period. OIPS should be contacted well in advance of an individual's arrival to discuss the appropriateness of the business visitor classification, payment options, follow-up paperwork requirements, etc.

For the last several years, GMU has allowed payments of this nature to be made to individuals in either business (B-1 or VWB) OR tourist (B-2 or VWT) status if the appropriate paperwork was completed at OIPS during their visit. Current proposed INS rules, however, would make individuals in tourist status ineligible for such payments if they knew in advance of their visit that they would be receiving them: "An alien may not be admitted as a nonimmigrant visitor for pleasure if the alien's plans include participating in pre-arranged academic activities for which the alien will accept honoraria." Under the proposed rules, someone in tourist status could only receive an honorarium or reimbursement if the opportunity arose AFTER they entered the U.S. In anticipation of the proposed rules becoming permanent, OIPS strongly suggests that all short-term international visitors ask specifically to be admitted to the U.S. in business status as opposed to tourist status. We will not be able to honor requests for payment to individuals in tourist status once the new rules take effect.

Visa/Visa Waiver

To be admitted to the U.S. in business status, individuals from most countries will need to apply for a B-1/B-2 visa at the U.S. embassy in their home country. Citizens of the following countries, however, are currently not required to get such a visa under the INS/DHS's Visa Waiver Program (VWP): Andorra, Australia, Austria, Belgium, Brunei, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Monaco, the Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom. More information on the VWP can be found at http://travel.state.gov/visa/tempvisitors_novisa_waiver.html#2
Citizens of Canada are exempt from visa requirements, but still need to request Form I-94 indicating admission in business status at the port of entry under the new proposed rules, and should begin doing so immediately. They will be charged a small fee (approximately $6.00 U.S.).

Letter of Invitation

Regardless of whether or not an individual is required to get a visa to be admitted as a business visitor, the new proposed rules indicate that individuals arriving in the U.S. with the intent to participate in honorarium-related activities will need to have with them a letter of invitation from the institution sponsoring the activity. The proposed rules state that "invitation letters should clearly specify the honorarium-related event or activity as well as the date and location of the activity. In addition, the letter may assist the inspecting Service officer in verifying that the activity the alien plans to participate in qualifies pursuant to section 212(1) of the (Immigration and Naturalization) Act." To avoid complications at the port of entry, please make sure that an appropriate letter of invitation has been issued to your business visitors and that they know to bring it with them to (if applicable) their visa interview AND that they should have it handy as they arrive at their U.S. port of entry.

Individuals entering the U.S. as business visitors who will be paid an honorarium or expense reimbursement by GMU need to follow the procedures under "Other Compensation" and/or "Expense Reimbursements".

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