Payments to foreign vendors or non-resident individuals

The W-8 form is required for foreign nationals or foreign vendors providing goods or services to the University.

• For individuals, complete W-8 BEN.

• For businesses, complete W-8 BEN-E.

Foreign vendors

New vendors must provide SPU with a completed W-8BEN for our records: https://www.irs.gov/pub/irs-pdf/fw8ben.pdf.

This is because the University is required to establish the tax status of foreign entities with which it conducts business. The W-8 submitted by a foreign entity indicates whether taxes need to be withheld when payments are processed.

Transactions that may trigger tax withholding include services performed in the U.S. A foreign entity from a country that has negotiated a tax treaty may be exempt from tax on certain types of transactions. If they are from a country with no treaty benefits, or the activity is not covered by the treaty, payment to the vendor is subject to 30% tax withholding.

Foreign vendors are placed on a payment "hold" to ensure that all requests for payments are reviewed for compliance prior to payment being processed.

Each W-8 is reviewed for tax status determination, and each invoice submitted for payment is reviewed by Accounts Payable for taxable-type transactions.

Payments to foreign vendors are made via U.S dollar checks, and by electronic funds transfer in U.S. dollars or the foreign currency.

Form W-8 Ben

About Form W-8 BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) | Internal Revenue Service

Payments to non-resident aliens

Payments to non-resident aliens include any payments made to a visiting lecturer from overseas or a contractor who lives overseas.

In general, 30% withholding tax will be applied to any amount due to the non-resident alien. However, some countries have entered into a tax treaty with the U.S.

The IRS routinely applies the accountable plan rules to U.S. citizen and U.S. resident independent alien independent contractors as well as payments made to or on behalf of NRA independent contractors. Seattle Pacific University will not include all travel and living expense reimbursement amounts in the NRA's gross income. These payments are not reportable to the IRS and are not subject to NRA withholding if the payments are made under an accountable plan as described in section 1.62-2 of the regulations.

Documentation Requirements

1. Copy of Passport

2. Copy of I-94 Record Card (An Arrival/Departure Record Card): Attached to the Passport. The card is issued by US Customs and Border Protection (CBP) upon arrival in the United States.

3. Copy of Visa: Located inside the Passport

4. Supplementary Statements (J-1 Visa or B-1/B-2 Visas):

For those persons on J-1 visas sponsored directly by Seattle University, the International Student Center handles authorization for honoraria paid directly by other institutions.

If a visitor to Seattle University is on a J-1 visa, the visitor should attach a supplementary statement from his/her sponsoring university or institution granting authorization to accept payments from Seattle University for independent personal services.

For non-resident aliens admitted into the U.S. on a B-1/B-2 visa (visitor for business / visitor for pleasure) or through WB / WT visa waiver program (visa waiver for business / pleasure), he/she should attach a signed, supplementary statement to indicate compliance with the 9/5/6 B honorarium rule, which specifies that he/she is receiving payment for a legitimate university purpose, that the activity engaged in is not more than 9 days, and that the non-resident alien has not received payments from more than five other such institutions in the past six months.

5. Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding): Form W-8BEN replaces Form W-8 and 1001 and can be obtained from the Internal Revenue Service.

6. Form 8233 (Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien): Obtain from the Internal Revenue Service. Instructions can be found here https://www.irs.gov/pub/irs-pdf/i8233.pdf

Accounts Payable will send the completed Form 8233 to Office of the Assistant Commissioner (International), Office of the International District Operations. Attn: CP:IN:D:C:SS, 950 L'Enfant Plaza South, S.W., Washington, DC 20024.