Payments to Non-Resident Aliens
Procurement & Payment Services
Payments/Reimbursements to Non-US Individuals and Companies
This information is for all payments/reimbursements paid thru Procurement & Payment Services and includes; AU students, AU employees and Non-AU affiliated individuals and companies. It is extremely important that these procedures are followed. Federal and state immigration and tax laws concerning Non-Resident Aliens are complicated and the forms that will be required vary widely depending on tax status, immigration status and what type of payment and/or reimbursement Auburn University will be making to the individual or company.
Payments and/or reimbursements to Non-US citizens, Non-US companies, students and employees of Auburn University fall under a different set of tax laws and withholding/reporting requirements than those that apply to US citizens and US companies. Generally, such payments made through PPS are subject to 30% federal tax withholding unless an exception applies.
Tax and federal immigration laws restrict the types of services a non-US citizen may perform and the types of payments and/or reimbursements they are allowed to receive. It is imperative to know before the guest arrives at Auburn their immigration status and whether they are traveling to AU from outside or inside the US.
To assist in this process, the AU host department must complete the AU Payment and/or Reimbursement Request Form for Non US Citizens and Foreign Companies before any assurance to pay is made.
The AU Payment and/or Reimbursement Request Form for Non US Citizens and Foreign Companies form is designed to simplify the payment process by summarizing the documentation that will be required to pay the individual and identify required tax withholding. Completing this form in advance of the guest's visit should eliminate delays in payment as well as insure that Auburn University is compliant with federal tax and immigration laws.
AU Student Travel And Other AU Employee Travel
Students on F-1 and J-1 visas can receive mileage reimbursement but not state established per diem. When traveling on AU business either in state or out of state, the students will be reimbursed actual expenses up to the maximum amounts allowed by AU Travel policy and supported by original receipts. This per diem rule does not apply to J-1 non- students or individuals on F-1 OPT or to F-1 and J-1 students traveling outside of the US.
- If a non-US student is involved in a competition in which the SCHOOL is a contender and the student must wear a uniform that designates the school, then all actual travel expenses can be reimbursed. Additionally, if a non-US student is presenting at a conference all actual travel expenses can be reimbursed. Note no per diem or standard rates can be given, only actual expenses can be reimbursed if supported by original receipts.
- If a non-US student's job requires travel and he/she is paid to travel and the job description includes the necessity of travel, then the student is deemed an employee and the reimbursement will not be taxable. This rule would apply to travel for departmental research, not the student's research which is personal/academic.
- If the student is traveling for any purpose not defined in (1) or (2) above, then all travel reimbursement is taxable.
Non-AU Affiliated Guests
- Actual expense reimbursement to an individual for a job interview (not GRA/GTA jobs) is not subject to these guidelines. Please notate the reimbursement is for a job interview on the travel voucher.
- New foreign vendors must register through the vendor registration process. New foreign vendors must register through the vendor registration process at www.vendor.auburnuniversity.net
- Payments to foreign companies for tangible goods (not including software) are not subject to these restrictions.