Evaluate all payments to foreign nationals for possible tax withholding. Apply the appropriate tax withholding rates and reporting method for tax purposes made to non-residents on all payments and remit the tax withheld to the IRS (Internal Revenue Service).
If you are planning to host an international guest (independent contractor), please contact the Business Office (Tami Babbs at 217-581-6455 or Jo Gentry at 217-581-7750) in advance in order to expedite payment. It is important to be sure that your guest can be paid promptly. A 30 percent tax rate is required to be withheld from the payment unless a tax treaty exemption applies. A social security number or an ITIN (individual taxpayer identification number – issued by the IRS) is required to claim any treaty exemptions.
Contact Jo Gentry, 217-581-7750, for further questions.