International Vendors and Royalties
Foreign national vendors at West Virginia University (WVU) and WVU Research Corporation
(WVURC), including authors receiving royalty payments on published works, must
complete registration through WVU Tax Services in addition to registering as a
supplier through WVU's
Procurement, Contracting and Payment Services (PCPS) team. In general, vendor
payments will be classified as either independent contractor payments (in the case
of a vendor performing services for WVU/WVURC) or royalty payments (in the case
of a vendor receiving copyright payments for works published by WVU). Foreign national
vendors must complete and submit the
Foreign National Packet for Vendors [PDF] to register with Tax Services.
Payments to International Independent Contractors
An individual receiving payment for non-employment services rendered to WVU/WVURC will be considered an independent contractor. When registering with Tax Services, the following will be determined for a foreign national vendor:- The individual's U.S. tax status (resident alien or nonresident alien),
- The appropriate tax withholding rate for payments to the individual, and
- The individual's eligibility to receive tax treaty benefits on payments received from WVU/WVURC.
In addition to completing registration with WVU Tax Services and WVU PCPS, an individual
performing services as an independent contractor must complete and submit an
Independent Contractor Determination Form [PDF]. The completed form should
be provided to the WVU/WVURC department for which they will be providing services.
The department must then submit the completed form to Tax Services for approval
before an individual may begin performing services. Additional information can
be found on the
Employee or Independent Contractor page.
An individual's non-immigrant status is an important factor that must be considered when making payments to an individual as an independent contractor. U.S. Citizenship and Immigration Services (USCIS) regulations determine the types of services that may be performed by an individual in each non-immigrant status. It is important that foreign nationals be aware of the restrictions that apply to their personal non-immigrant status. Performing services that violate the restrictions of their non-immigrant status can be cause for termination of the individual's non-immigrant status and can lead to disqualification from future immigration benefits (e.g., U.S. lawful permanent resident status, or a "green card"). If an individual is unsure of whether they can perform independent contractor services while in their current non-immigrant status, they should contact the sponsor of their status or an experienced immigration attorney before performing any services.
WVU Tax Services approval of payments to an independent contractor is not an endorsement of the permissibility of the services performed and should not be interpreted as such. WVU, WVURC, and the subsidiary departments of these organizations, including WVU Tax Services and the department for which an individual performs services, are neither responsible nor liable for any future consequences an individual may be subject to as a result of performing impermissible services for WVU/WVURC as an independent contractor.
A foreign national with nonresident alien tax status who performs services for WVU/WVURC as an independent contractor will generally be subject to 30% tax withholding on all payments, as required under the Internal Revenue Code. WVU/WVURC will withhold the appropriate taxes from the payments before payment is made to the independent contractor. These payments will be reported on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, and Form 1042-S will be mailed to the individual no later than the Internal Revenue Service (IRS) deadline.
A foreign national with resident alien tax status who performs services for WVU/WVURC as an independent contractor will generally not have tax withheld from their payments. If the individual receives more than $600 in payments from WVU/WVURC in a calendar year for services performed as an independent contractor, the payments will be reported on Form 1099-NEC, Nonemployee Compensation, and Form 1099-NEC will be mailed to the individual no later than the IRS deadline. If the individual receives less than $600 in payments in a calendar year, WVU/WVURC is not required to and will not issue Form 1099-NEC. In situations where WVU/WVURC do not issue a tax document, it does not mean automatically mean payments an individual received are not reportable on their personal income tax returns. Individuals with questions regarding if payments they received from WVU/WVURC should be reported on their personal income tax returns contact a professional tax advisor for assistance.
International Royalty Payments
When registering with Tax Services, the following will be determined for a foreign national vendor:- The individual's U.S. tax status (resident alien or nonresident alien),
- The appropriate tax withholding rate for payments to the individual, and
- The individual's eligibility to receive tax treaty benefits on payments received from WVU.
A foreign national with resident alien tax status receiving royalty payments for a copyrighted work published through WVU will generally not have tax withheld from their payments. If the individual receives more than $10 in royalty payments from WVU in a calendar year, the payments will be reported on Form 1099-MISC, Miscellaneous Income, and Form 1099-MISC will be mailed to the individual no later than the IRS deadline. If the individual receives less than $10 in royalty payments in a calendar year, WVU is not required to and will not issue Form 1099-MISC. In situations where WVU/WVURC do not issue a tax document, it does not mean automatically mean payments an individual received are not reportable on their personal income tax returns. Individuals with questions regarding if payments they received from WVU/WVURC should be reported on their personal income tax returns contact a professional tax advisor for assistance.