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UAB Financial Affairs

Non-U.S. Citizens

Payments to non-U.S. citizens are governed by specific tax laws. For tax purposes a non-U.S. citizen may be classified as a non resident alien (NRA) or resident alien (RA).

Organizations should email isss@uab.edu when beginning the onboarding process for a non-U.S. citizen who will be coming to the UAB campus as a student or visiting scholar. Information about tax implications for F-1 students and J-1 visiting scholars is available on the International Student & Scholar Services website here. Organizations should email ifsis@uab.edu when beginning the onboarding process for a non-U.S. citizen who will be coming to the UAB campus as an employee. HR-related immigration information for H-1B and other types of employees is available on the International Faculty & Staff Immigration Services website here.

Employee/Trainee payments require a non-U.S. citizen to have a permanent U.S. identification number (e.g. SSN or ITIN). If the NRA does not have a permanent U.S. identification number, organizations may request a temporary records identification number.

Temporary identification numbers may be requested for non-U.S. citizens who are being appointed as employees or trainees in the following UAB job assignment categories:

  • 01 Full-time Regular
  • 02 Full-time Temporary
  • 03 Part-time Regular
  • 04 Irregular
  • 06 Student Employees (must be enrolled as UAB student)
  • 07 Interns/Residents
  • 12 Three Twelve-hour-shift
  • 17 Weekend Staff Nurse
  • 20 Postdoctoral Scholar Trainee
  • 21 Postdoctoral Scholar Employee
  • 46 Trainees

Please complete and email copies of the following to UAB Payroll Services at payhelp1@uab.edu:

  • Trainee Determination Checklist
  • Employee/Trainee/Invitation offer letter
  • Passport biographical page
  • Work authorization document (e.g., Form I-20 for F-1 student, Form DS-2019 for J-1 scholar, Form I-797 approval notice for H-1B, etc.)
  • Individual’s most recent Form I-94, downloaded from https://i94.cbp.dhs.gov/home

Once all documents have been reviewed and the determination made as to whether the non-U.S. citizen will need to apply for an individual tax identification number (ITIN) or social security number (SSN), you will receive instructions for processing the appointment document. ISSS will be notified of the determination and will be available to assist the employee/trainee with applying for a permanent US identification number.

Notes: Payments to non-U.S. citizens with temporary records identification numbers are subject to maximum tax withholdings. Treaty benefits, if applicable, will be granted once the permanent U.S. identification number is received. Compensation payments may not be reported under an ITIN. Should the nature of the non-U.S. citizen's assignment change from trainee or independent contractor to compensation, a temporary records identification number must be requested until the non-U.S. citizen receives a SSN.

Payments for non-U.S. citizen independent contractor services may be issued through Payroll Services or Accounts Payable dependent on the nature of the payment and the taxability of the payment.

Independent contractor payments (e.g. honorarium payments, foreign-source income payments, etc.) must be approved by a financial affairs tax accountant. To determine if services qualify as independent contractor services, organizations must submit:

  • Personal Services Authorization Form
  • Contract (payments > $2,500.00)

Documents should be submitted for approval prior to the date(s) of service. Non-U.S. citizen independent contractor payments determined payable through Payroll Services require the non-U.S. citizen to meet with ISSS for a tax analysis. Payments must be approved by ISSS.

Note: PSF forms submitted and/or approved after the non-U.S. citizen has left campus require the submitting department to contact ISSS to determine what information is required for a tax analysis. The process is the same for non-U.S. citizens that perform services in external locations at the request of UAB departments.

ISSS will assist the independent contractor with applying for a permanent U.S. identification number if necessary. However, payments may be issued using a temporary records identification number. Following the tax analysis, ISSS will notify the department and Payroll Services (payhelp1@uab.edu) of the results. If the non-resident does not have a U.S. tax identification number, a temporary identification number will be assigned and document processing instructions will be sent to the department.

Note: Payments to non-U.S. citizens with temporary identification numbers are subject to maximum tax withholdings. Treaty benefits, if applicable, will be granted once the permanent U.S. identification number is received.

Expense reimbursements for non-resident alien independent contractors do not require a personal services form. If the non-resident does not have a U.S. tax identification number, the department should forward a completed W-8BEN form via email (FA-vendorcompliance@uab.edu) or fax to (205) 934-9369. The department will be notified once the supplier number has been assigned.

Note: Travel expense reimbursement for non-resident alien independent contractors are subject to the rules of the UAB Individual Independent Contractor Accountable Travel Plan policy.

Tax Residency Tests and Qualifications

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