Independent contractor payments (e.g. honorarium payments, foreign-source income payments, etc.) must be approved by a financial affairs tax accountant. To determine if services qualify as independent contractor services, organizations must submit:
Documents should be submitted for approval prior to the date(s) of service. Non-US citizen independent contractor payments determined payable through Payroll Services require the non-US citizen to meet with UAB Global - International Student and Scholar Services (ISSS) for a tax analysis. Payments must be approved by ISSS.
PSF forms submitted and/or approved after the non-US citizen has left campus require the submitting department to contact ISSS to determine what information is required for a tax analysis. The process is the same for non-US citizens that perform services in external locations at the request of UAB departments.
ISSS will assist the independent contractor with applying for a permanent US identification number if necessary. However, payments may be issued using a temporary records identification number. Following the tax analysis, ISSS will notify the department and Payroll Services (email@example.com) of the results. If the non-resident does not have a US tax identification number, a temporary identification number will be assigned and document processing instructions will be sent to the department.
Payments to non-US citizens with temporary identification numbers are subject to maximum tax withholdings. Treaty benefits, if applicable, will be granted once the permanent US identification number is received.
Expense reimbursements for non-resident alien independent contractors do not require a personal services form. If the non-resident does not have a US tax identification number, the department should forward a completed W-8BEN form via email (firstname.lastname@example.org) or fax (934-9369). The department will be notified once the supplier number has been assigned.
Travel expense reimbursement for non-resident alien independent contractors are subject to the rules of the UAB Individual Independent Contractor Accountable Travel Plan policy.