2016 Financial Services Workshop International Tax Presented by: Marci Copeland, Payroll Director Kristy Goggins, International Tax Specialist

Onboarding New International Employees

International Employees  Schedule a tax assessment with on or before first day of work  International employees do not fill out the same tax forms as US citizens  International employees are required to complete tax assessments annually

International Students Scholarships Non-Qualified Educational Expenses

 Keep this in mind when bringing a student in on Scholarship, there is potential taxation up to 30%.  Some Examples of Non-qualified Educational Expenses  Health Services Fee  Student Health Insurance  Meal Plan  Housing  Living and Personal Expenses  Etc.

Non-Qualified Educational Expenses  All international students receiving financial aid from ECU exceeding tuition and other qualified educational expenses are required to complete a tax assessment in the payroll office  The tax assessment will determine their tax status as a non- resident alien or resident alien, taxation, and determination if tax treaty benefits are available

International Visitors Honoraria/Speakers

What should you do when bringing an International Speaker to ECU?

International Visitors/Speakers  Contact International Tax beforehand  Certain visa types cannot receive remuneration  Restrictions on Honoraria payment  The speaker will need to complete an International Vendor Information form and provide all applicable immigration documents  If possible, the speaker should come to the payroll office for a tax assessment

International Students/Employees/Visitors Prizes and Awards

International Individuals-Prizes and Awards  Before a prize can be paid to a International person, they are required to:  Fill out the International Vendor Information form  Provide all immigration documents to International Tax  Fill out a W-8 or W-9 (based on citizenship)  If possible, they should come to the payroll office to complete a tax assessment

International Visitors Travel Reimbursements

What should you do when paying a travel reimbursement to an international individual?

International Individuals/Visitors - Travel  Contact international tax beforehand  Do NOT pay for airline tickets, etc. directly with a ProCard  All payments that have anything to do with International individuals/companies should go through Accounts Payable and be vetted by International Tax.

International Visitors Purchasing

International Individuals/Companies – Purchasing & Reimbursements  Any purchases made from an international vendor MUST go through Accounts Payable  All reimbursements payable to international individuals must be reviewed for potential taxation  International vendors cannot be paid with ProCard  International vendors should never be paid directly by a person in the department  A current W-8 is required to be on file for all International Vendors  W-8s expire after 3 years

Examples

H1B, J-1, and O-1 Visa  J1 and O1 visa holders are not permitted to receive certain types of reimbursements without permission from their sponsoring agent  Non-ECU sponsored H1B visa holders visiting ECU as a lecturer, speaker, etc. are not eligible to receive payment from ECU  ECU must be sponsoring agent if employing individuals with a H1B, J-1, or O-1 Visa.

F-1 Visa  Unless the F-1 VISA holder has OPT or CPT attached to their VISA, they are not permitted to work off the sponsoring campus  Non-ECU F-1 visa holder must have OPT or CPT to be potentially eligible to receive any reimbursement or payment and have authorization from sponsoring school DSO  If they are working on their sponsoring campus, they are not permitted to work more than 20 hours per week

Visa and Payment Chart for Schools/Agencies Type of Visa StatusAppropriate ActivitiesCan Expense Be ReimbursedCan the Agency Pay Person? What documents are needed to process payment? B-1 Business Visitor or B-2 Visitor for Pleasure (sometimes classified as a “Visitor-No Pay”) Guest Lecturer; Guest Researcher if doing own research (not for Agency Benefit). Cannot be agency employee. No work authorization. Eligible to receive reimbursement for travel expenses and per diem, in limited circumstances. Eligible to receive honorarium in limited circumstances: otherwise no payment. E-3 with Agency, for Australians only Work authorized professional employee, can only work at Agency. Work-related expenses can be reimbursed. Yes, with E-3 approval notice of I-94 card. F-1 StudentMay be employed on-campus up to 20hrs/wk during classes, and full-time when school is not in session or during annual vacation. Work-related expenses might be reimbursable if DSO (Designated School Official) authorizes them. Yes, with Form I-20 explicitly endorsed by DSO, visa, passport, and I-94 card. F-1 Student with Scholarship or assistantship or fellowship May be employed on-campus in field of study up to 20hrs/wk during classes, and full0time when school is not in session or during annual vacation. Work-related expense might be reimbursable if DSO authorizes them. Yes, with Form I-20 explicitly endorsed by DSO F-1 student with Curricular Practical Training (CPT) Work authorized in field of study. May be full- time or part-time. Work-related expenses might be reimbursable if DSO authorizes them. Yes, if student has CPT authorization of Form I-20. F-1 student with Optional Practical Training (OPT) Work authorized ­only if student has OPT EAD card and student is working in field of study. May be full-time or part-time. Part-time OPT is 20hrs/wk or less. Work-related expenses might be reimbursable if DSO authorizes them. Yes with Form I-20 explicitly endorsed by DSO, visa, passport, and I-94 card. PLUS, an OPT EAD card. (EAD means Employment Authorization Document) F-1 Student, not at your school Work authorized only if student has CPT authorized by school in field of study, or an OPT EAD card and student is working in field of study. Work-related expenses might be reimbursable, if other school’s DSO authorizes them. Yes, with Form I-20 explicitly endorsed by DSO, visa, passport, and I-94 card. PLUS, a CPT authorization on Form I-20 or an OPT EAD card. H-1B with School/AgencyWork authorized processional employee, can only work at school/agency Work-related expenses can be reimbursed. Yes, with valid visa, passport, I-94 card and/or I-797 ( H-1B approval notice).

Type of Visa StatusAppropriate ActivitiesCan Expense Be ReimbursedCan the Agency Pay Person? What documents are needed to process payment? H-1B with another employer, but coming to your school/agency Work authorized at your school/agency only after H petition for NCSU is filed with immigration service, in limited circumstances. Otherwise, no work authorization Work-related expenses can be reimbursed, after H petition with school/agency is filed with immigration service, in limited circumstances Yes-after H petition for school/agency is filed with immigration service, in limited circumstances. H-4 with EAD cardWork authorized only with EAD card. Otherwise, no H-4 work authorization. Work-related expenses can be reimbursed. Yes, with EAD card. J-1 with School/AgencyWork authorized exchange visitor (student, researcher, scholar, post-doc, etc.) at School/Agency Work-related expenses can be reimbursed. Yes, with visa, passport, I-94 card and Form DS-2019 J-1 with another entityGuest Lecturer or Researcher. Cannot be School/Agency employee. No work authorization. Eligible to receive reimbursement for travel expenses and per diem, in limited circumstances. Eligible to receive honorarium in limited circumstances; otherwise no payment. Permission from sponsoring agency for person to be at school/agency as Guest Lecturer or Researcher is required. J-2 with EAD cardWork authorized-but only with EAD card. Otherwise, no J-2 work authorization. Work-related expenses can be reimbursed Yes, with EAD card O-1 with School/AgencyWork authorized professional employee, can only work at School/Agency Work related expenses can be reimbursed. Yes, with O-1 approval notice. TN with School/Agency, for Canadians and Mexicans only Work authorized professional employee, can only work at School/Agency Work-related expenses can be reimbursed. Yes, with TN I-94 card. WB or WT-Visa Waiver (sometimes classified as a “Visitor-No pay”) Guest Lectures; Guest Researcher if doing own research (not for School/Agency benefit). Cannot be School/Agency employee. No work authorization. Eligible to receive reimbursement for travel expenses and per diem, in limited circumstances. Eligible to receive honorarium in limited circumstance; otherwise no payment.

Important Information  Bringing an international visitor to ECU without the person being vetted by International Tax can potentially negatively impact the individual’s VISA status with USCIS  No international student/visitor/vendor should be paid using a Pro-card or through reimbursement of a U.S. person  All VISA types have different rules as to what the individual is allowed to do in the United States  When in doubt, always contact International Tax before doing anything involving International vendors

Contact Information Marci Copeland - Kristy Goggins -

Questions?