Preparing Payment Documentation
In addition to the general information needed to prepare a Contract for Professional Services (VCPS or CPS) or Payment Voucher in the PeopleSoft Financials System (EFS), the department will need to get certain work eligibility and tax information about the international visitor to complete the contract and payment process:
- Visa status, expiration date, and country of residence.
- Determine if work is being done outside the United States.
- Individual Tax Identification Number (ITIN) issued by the IRS or a U.S. Social Security number (SSN) issued by the Social Security Administration, if available. If the visitor does not have an ITIN (or SSN), the department must provide the visitor with information on how to obtain an ITIN. See Individual Taxpayer ID Number (ITIN) for more information.
The original tax treaty forms must be forwarded to Payroll Services before the payment is approved.
Additional data to submit and scan to ImageNow.
- Honoraria and Expense Reimbursement Form (pdf), if paying an honoraria to visitors with B, WB, and WT visa status
- Documentation supporting reimbursed expenses
Routing the Contract and Payment Voucher
Follow the instructions for processing a purchase of professional service in the University Policy and Procedures Library to establish the vendor, contract, and/or payment voucher in the EFS PeopleSoft Financial System. For other non-employee voucher payments to nonresident foreign nationals, see Accounts Payable: Paying Non-Payroll Expenses. Scan to ImageNow to guarantee that Payroll Services can view the attachments.
Payroll must view all documentation to insure that the visitor status is appropriate for the type of payment being secured, the supporting expense and honoraria documentation is on hand, and that the correct taxes are being withheld from the payment.
All payments (for services and expenses) to nonresident foreign nationals for services performed in the U.S. will automatically be put in pending status until reviewed and approved by Payroll Services. Payroll Services will determine if the payment is subject to the 30% tax withholding, a reduced tax rate, or eligible for treaty benefits and will make any necessary changes based on tax treaty eligibility, ITINs, and appropriate forms and documents.
Expenses that follow the IRS accountable plan rules are not subject to tax withholding. The original completed and signed tax treaty forms must be submitted to Payroll Services for the tax exemption to be honored. All other documentation should be scanned and available in ImageNow.
Contacts
Visa type regulations
International Student & Scholar Services
612-626-7100
Payments and tax withholding/reporting
Office of Human Resources
ohr@umn.edu, 612-624-8647, or 800-756-2363
Purchasing of professional services
Purchasing Services
612-624-2828
Vendor setup and voucher payments
Disbursement Services
612-624-1617
General EFS question
University Financial Helpline
612-624-1617
Note on University Accountability
The University is subject to IRS penalties and fines for failure to treat payments to nonresident foreign nationals properly. If any University employee is involved in inviting, hosting, or paying an international visitor, IRS holds the University accountable for the proper tax treatment and reporting for these payments.