Payments to nonresident aliens who are non-employees for services performed in the U.S. are subject to federal immigration restrictions based on their visa classification.
Generally, an allowable payment is subject to 30% income tax withholding unless 1. the recipient is a resident of a country with a treaty that exempts honorarium income from taxation, and 2. the recipient files Form 8233 with USNH Disbursement Services to claim the exemption. The payment is reported on Form 1042-S.
The Banner invoice document supporting the payment should include an indication that the individual is a nonresident alien, the location services are rendered (i.e., in U.S. or outside U.S.) and whether Form 8233 has been filed with USNH Disbursement Services. The originator must contact USNH Accounts Payable when a nonresident alien honorarium payment is being processed.