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.
Complete this form to provide the BYU Tax Office with the information to determine which options might be available for your particular payment. After completing the form, you can print it and/or email it directly to the Regulatory Accounting by selecting the appropriate button(s) at the bottom of the form.
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.
If you are making payments to a foreign recipient for services completely performed outside of the US, you do not need to complete the above form. Instead, indicate on the fast track that the payee is not a US citizen, indicate the foreign country were all services are performed in the work location field, and provide a detailed explanation of the services performed in the payment reason field. If any services are performed in the US or this is a payment for something other than services (i.e. royalties or licenses, etc.), you must complete the form above.
If any services, or a portion of the services, are performed in the U.S., you must complete the form above.