The paperwork required is dependent upon the foreign supplier’s immigration status and the nature of the payment.
- Submit a request to UPST by using the Add or Update a Supplier Form.
- UPST will send you a confirmation email with a case number.
- Respond to the UPST confirmation email and attach all required documents.
- See the requirements below for the appropriate documents necessary for supplier submission.
- Use the checklists and flowcharts below to assist you in defining the nature of the payment.
Nature of the Payment
Services performed in the U.S. (honoraria, speaker, consultant, performer), scholarship/fellowship, royalties/licenses (i.e. the right to use images, films, music, arts, text, copyrights, patents, software licenses, or other intellectual property), prize, award, and human subject payment. These U.S. sourced payments are subject to 30% of federal income tax withholding in the absence of income tax treaty benefits.
Section 1441 requires withholding agents to withhold tax on payments made to the nonresident aliens for U.S. tax purposes. As a withholding agent, University of Massachusetts is liable for any tax required to be withheld. This liability is independent of the tax liability of the foreign person to whom the payment is made. Section 1461 states that if a withholding agent fails to withhold and the foreign payee fails to satisfy its U.S. tax liability, then both the withholding agent and the foreign person are liable for tax, as well as interest and any applicable penalties.
Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. The tax is generally withheld from the payment made to the foreign person. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person's country of residence and the United States.
- Individual (non-U.S. citizen and not a lawful permanent resident/green card holder): UPST will create a GLACIER shell record for the supplier after you submit a request. A step-by-step GLACIER Supplier Training Guide can be provided to the supplier. When the GLACIER record is completed, required forms will be generated by GLACIER for submission. Signed forms and supporting documents must be submitted to UPST.
- Entity (Company/Organization): An IRS W-8 form is required (commonly W-8BEN-E, also W-8ECI, W-8EXP or W-8IMY). W-8 forms and instructions are available on the W-8 Forms and Instructions webpage.
The supplier must be performing services for the benefit of the University of Massachusetts (e.g. Guest Speaker, Guest Lecturer, Performer, Independent Contractor and Interview Candidate). Campus requester must attach an invitation letter or volunteer letter acknowledging the donation of services and listing any travel costs/benefits that will be provided by UMass.
- A Foreign Supplier Reimbursement Form is required. Do NOT use this form if reimbursements are made for the benefit of the individual to aid such individual in pursuing his/her study or research. The payment would be classified as a non-service scholarship or fellowship because the supplier is not providing any services. The reimbursement is not excludable under the accountable plan rules and must be taxed accordingly. Example: A student participating in a UMass graduate program travels to a conference out-of-state. Although the student will not be presenting at the conference, UMass graduate program agrees to pay $500 for travel costs so the student is able to experience a conference. Please see Payments to Students Guide for more details.
Checklists, Forms, and Resources
Use the following checklists and flowcharts to assist you in defining the nature of the payment.