Payment Matrixes for Nonresident Aliens, U.S. Citizens and Resident Aliens

 

 

Nonresident Aliens Matrix
Type of Payment
UNCW Departments involved in Approval Process
Direct Contact
PUR 1.40 Required Prior to payment
FIN 1.10 Required Prior to Payment
Tax and Immigration Forms Required Before Pymt
Tax Form Issued to Individual
Tax Status
Employee Wages / Service Stipend
Human Resources, International Programs, Hiring Dept., Payroll
Payroll Manager (ext. 27255)
No
No
I-9, W-4 for wages not exempt under tax treaty, Form 8233 for wages exempt under treaty, NC-4, Foreign National Information Form
1042-S if all or some exempt under tax treaty; W-2 if taxable or partially taxable (often both forms required)
Graduated Federal withholding rates if wages are taxable. NC State tax withholding.  Visa status dictates FICA taxation
Fellowship & Scholarship (UNCW Students) / Non-service Stipend
International Programs, Financial Aid, Student Accounts
Student Accounts Manager (ext. 23794)
No
Yes
W-8BEN with foreign home address, Foreign National Information Form
1042-S
Withholding 30% (14% for F or J students) if award is not exempt under tax treaty or is not entirely used for tuition and fees.  NO FICA
Independent Contractor Payments (Honoraria)
International Programs, Tax Compliance, Purchasing, Human Resources
Tax and Financial Reporting Accountant (ext. 22757)
Yes
No
W-8BEN with foreign home address, Foreign National Information Form, Compliance Statement, Form 8233 if receiving treaty benefits
1042-S
Withholding 30%, unless eligible for a tax treaty ; NC state tax required if > 1,500.  No FICA.
Travel Expense Payment / Reimbursement
International Programs, Travel, Tax Compliance, Payroll
Travel Manager (ext. 27504)
Yes, if payment or reimbursement is for an Independent Contractor or honoraria recipient. Option 2 and 3 on PUR 1.40
No
Foreign National Information Form
None if original receipts provided and payment are less than or equal to the receipted amount.  If more, 1042-S issued
Nontaxable if the UNCW reimbursement policy and procedure guidelines are followed along with the following three criteria: (1) have a business connection (2) be paid or incurred for travel while the recipient is "away from home" and (3) be paid or reimbursed under an accountable plan  /   Tax withholding rates may vary depending on visa type
*In all cases, determination of taxability requires copies of Passport, Visa, I-94, Social Security Card or ITIN Card and Form I-20 (if Student) or Form IAP66/DS2019

 

U.S. Citizen and Resident Alien Matrix
Type of Payment
UNCW Departments involved in Approval Process
Direct Contact
PUR 1.40 Required Prior to payment
FIN 1.10 Required Prior to Payment
Tax Form Required Before Pymt
Tax Form Issued to Individual
Tax Status
Employee Wages / Service Stipend
Human Resources, Hiring Dept., Payroll
Payroll Manager (ext. 27255)
No
No
I-9, W-4, NC-4
W-2
Graduated Federal withholding rates if wages are taxable. NC State tax withholding. FICA.
Fellowship & Scholarship (UNCW Students) / Non-service Stipend
Financial Aid, Student Accounts
Student Accounts Manager (ext. 23794)
No
Yes
N/A
1098-T
N/A
Independent Contractor Payments (Honoraria)
Purchasing, Tax Compliance, Human Resources, Accounts Payable
Tax and Financial Reporting Accountant (ext. 22757)
Yes
No
W-9
1099-MISC
N/A to federal taxes, NC state taxes withheld if payment is to a nonresident of NC
Travel Expense Payment / Reimbursement
Travel 
Travel Manager (ext. 27504)
Yes, if payment or reimbursement is for an Independent Contractor or honoraria recipient. Option 2 and 3 on PUR 1.40
No
N/A
None if original receipts provided and payment is less than or equal to the receipted amount.  If more, reported in box 1 of W-2
Nontaxable if the UNC Wilmington reimbursement policy guidelines are followed and the following three criteria are met:  (1) have a business connection (2) be paid or incurred for travel while the recipient is "away from home" and (3) be paid or reimbursed under an accountable plan