- W-8BEN (If the supplier is not already set up in UND Marketplace)
- Please include the below information in the comments and/or business purpose of the
invoice in UND marketplace
- Date(s) of the visit/presentation
- Purpose of visit
- Visa Status
- Has the individual been pair or reimbursed by more than 5 U.S. Institutions during the 6 months prior to the visit
Honorariums are payments to a foreign national for participation in a usual academic activity for the benefit of UND. Honorariums must also fall under the 9/5/6 rule where the activity at UND lasts no longer than 9 days and the individual cannot receive honorariums from more than 5 institutions in any 6 month period. Withholding taxes apply as outlined below.
UND payments to foreign individuals and entities may be subject to tax withholding and/ or reporting in accordance with regulations strictly enforced by the U.S. tax and immigration authorities. As a withholding agent, UND is required to collect the appropriate IRS certification form (W-8BEN, W-8BEN-E, 8233, or others) from nonresident aliens, or entities, to establish their foreign status. These documents also inform what statutory tax withholding or allowable tax exemptions withholding agents can apply, such as whether income might be considered exempt as foreign sourced when paid to a nonresident alien for activities occurring outside the U.S.
- The location of the activity would be where a service is being performed, property is being rented, or the location where fellowship income is expected to be utilized in support of one’s scholarship or research.
- Royalties, copyrights, and patents, such as those paid for the use of intellectual properties (i.e., industrial properties and software licenses), are always considered U.S.-sourced when utilized by UND due to our U.S. location. This income could be taxable up to 30% if a tax treaty claim is not established.
- Payments for tangible goods on international purchases are not subject to U.S. reporting or tax withholding, assuming the goods are shipped to, and used in, the U.S.
- Awards & Prizes are subject to 30% tax withholding. There are no treaty benefits for this type of income.
If the source of income cannot be determined at the time of payment because the location of the activity is not clearly indicated, the payment must be treated as U.S. sourced under IRS Regulations. Incorrect or missing information may also result in payment delays or incorrect tax withholding/reporting.
Reimbursements (including per diem allowances and other business expenses in accordance with UND Travel and Expense policy) are generally not considered income and therefore do not have foreign tax withholding. All reimbursements need to be substantiated by receipts. An invoice including a generic line relating to travel costs/reimbursements is only exempt to the extent receipts are provided. Any costs above and beyond receipt amounts would be taxable.
These payment methods relate to Non-Catalog Purchases and Payment Requests in UND Marketplace. Use of the Non-Employee Reimbursement form on payments to foreign individuals/entities is not allowed.
- ACH:
- When selecting a supplier on a Non-Catalog Purchase Form or Payment Request, under the fulfillment center/address you’ll see the word “Primary”. If it is followed by “ACH” the payment can be made via ACH. No further payment method action required by the department.
- Check (Canada Only):
- If the individual/entity has a Canadian address and can accept U.S. checks, please note in the comment box in Requisition in UND Marketplace to pay via check.
- International Wires
- All other payments to international individual/entities will be made via international wire.
- Please complete and attach an International Wire Payment Form to your requisition in UND Marketplace. The form can be found on the UND Marketplace/Jaggaer homepage under the Forms & Links tile.
- Please ensure the form is fully completed, signed by the department, and has an accurate total to be wired.