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Payroll Office

Foreign National Consultants & Independent Contractors

It is strongly recommended that you contact the Payroll office early in the approval process in order to avoid unfortunate circumstances in which some situations a payment may not be allowable.  A Service Agreement is utilized as the payment process for a Non-Resident Alien for Independent Personal Services.

Payment Restrictions

Honorarium payments to B-1, B-2, WB and WT Visa Holders– can be paid to a Foreign National in Visitor status in the United States who is engaged in usual academic activities for the benefit of the institution under the following conditions, 9/5/6 Rule:

1. Activity must not last longer than issued by the INS, at any single institution.

2. The individual has not accepted such payment or expenses from more than 5 institution or organizations in the previous 6 months period.

3.  A signed statement from the individual must be obtained and attached to the voucher certifying that the individual qualifies for payment of an Honorarium or expenses under the above condition.

Travel Expenses may be reimbursed with original receipts in the name of the individual only, reasonable expense amount, and direct business purpose.

Tax Implications

If  tax treaty benefits are available and claimed, the Form 8233 is completed and signed by the consultant/independent contractor then submitted to the payroll office for review and subsequent filing with the IRS. A 10 day waiting period is required by the IRS before a check can be issued to the consultant.

If tax treaty benefits are not available or not claimed, 30% of the payment for services will be withheld from the gross amount due and subsequently deposited with the IRS. 

Form 1042S will be issued to the independent contractor no later than March 15th of the year following the year in which the payment was made. Form 1042s is provided to file with the consultants Form 1042NR return.

Accountable Plan Rule Tax reporting and tax withholding are not required on documented business expense reimbursements supported by original receipts in accordance with policies and procedures at UTSA. Undocumented business expense reimbursements are subject to withholding at the 30% rate, unless exempted by tax treaty.

Required Documentation The following documents must be presented to the Payroll Department before any payments can be issued:

Required Supporting Documentation

Item Description
1 Social Security Number or Individual Taxpayer Identification Number (ITIN)
2 Passport with the B-1/B-2 or "WB" or "WT" stamp or the NRA's Form 1-94, Arrival/Departure Records
3 If Visitor from a Visa Waiver Country, VISA with photo. View Visa Types page for list of Visa Waiver Countries.


Required Forms

Item  Description
1 Fully approved Services Agreement and Vita/Resume
2 IRS Form 8233, if the nonresident alien is claiming exemption from withholding tax under a tax treaty between USA and his/her country of residence
3 Signed 9/5/6 statement - explained below
4 Local funds voucher for payment

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