A nonresident alien is a person who is not a U.S. citizen or resident and does not meet qualifications for resident alien status. If an individual has resident alien status documentation proof of this special status must be submitted with the payment request.
- Taxpayer Identification Numbers: Payments should not be made to nonresident aliens without an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN). The IRS will issue an ITIN to a nonresident alien who does not have and is not eligible to get a Social Security Number (SSN). The ITIN is for tax purposes only. It is possible to process a REFUND of a payment made to PSU without an ITIN or SSN. Please contact the Business Office at Ext. 4150 if you need to pay an individual that does not have an ITIN or SSN.
- Tax Withholding: Pittsburg State University is required by law to withhold taxes from certain payments made to a nonresident alien dependent on the type of payment and their country of origin. All NRA vendor payments must be reviewed and the applicable federal and state income tax withheld unless they are specifically exempted by U.S. tax law or by an income tax treaty. Types of payments include:
- Educational Stipends
- Cash Prizes and Awards (Including Gift Certificates)
- Payment for Services (Independent Contractor)
- Payments requiring tax withholding are taxed at 19% (14% federal, 5% state) for educational expense payments/stipends and 35% (30% federal, 5% state) for all other payments.
- Reimbursements: Reimbursements to an NRA for ordinary and necessary travel expenses or supplies is not subject to federal and state withholding. An ITIN/SSN must be provided along with original receipts and the normal accounts payable/travel process is followed.
- Payment Procedures: Request for the gross payment may be submitted on a Departmental Purchase Requisition Form. The following documentation must also be attached to the requisition:
- Copy of the individual's ITIN or SSN Card
- Completed/Signed W-8BEN (replaces the W-9 for U.S. citizens in vendor set up)
- Copy of your Visa and/or Passport
- Completed Stipend Form (for stipends only)
- Invoice or Independent Contractor/Consultant Certification Form(for services only)
The use of gift certificates and gift cards is NOT allowed. If a cash prize needs to be awarded, it should be in the form of a check to the winning individual so the withholding can be deducted before payment.
When all completed documentation is received the payment request will be reviewed by the Business Office and then processed deducting any required federal and state taxes. Any withholdings and all completed paperwork will be sent to Accounts & Reports with the State of Kansas for submission to the IRS and the Ks. Dept. of Revenue.
1. Funding: At this time, the State of Kansas Office of Accounts & Reports remits any withholdings to the IRS for state agencies. For this reason, any payments to NRAs must be made with state funds.