Honorarium / Fee For Services / Stipend

General Withholding and Treaty Considerations
Payments to foreign recipients of honorariums, stipends, or for services are generally subject to a 30% tax withholding which is remitted to the IRS by the University. The facts of each circumstance have to be considered to determine if the benefits of an income tax treaty are available to reduce or avoid withholding or if the foreign payee qualifies as a U.S. tax resident.

Please contact the BYU Tax Office to determine which options might be available for your particular payment.

Required Documentation
As indicated on the form above, you will need to collect copies of certain documents from the foreign payee. If the payee has a U.S. Permanent Resident Card (i.e. Green Card), that is the only documentation we would need. If the payee does not have a Green Card, obtain copies of their passport, visa, and I-94/I-94W.

Some payees from visa waiver countries may not have required a visa to enter the country and would not have completed an I-94. They still should have completed an I-94W for Business or have a record from the Electronic System for Travel Authorization (ESTA). Visa waiver countries are listed on the State Department’s Website.

Payees from Canada do not require a visa to enter the country, but can still receive an I-94 for Business visitors stamp in their passport. The paying department can provide a letter inviting the payee to visit campus and offering an honorarium. The payee, at their port of entry, presents the letter and requests the stamp.

Foreign Services
If you are making payments to a foreign recipient for services completely performed outside of the US, please indicate on the Workday Supplier Invoice Item Description that the payee is not a US citizen, indicate the foreign country where all services were performed, and provide a brief explanation of the services performed. If any services were performed in the US, please indicate in the Item Description.

Contact

Janelle Wilson
Ext 2-4831
or
tax@byu.edu