Payments to Non-Resident Aliens for Services performed outside the USA

If a nonresident alien is contracted or employed to perform services outside the United States, they are not required to have a social security number or individual taxpayer identification number in order to receive payment. This type of payment is not reportable to the IRS.

In these situations, the following forms must be completed and submitted to Accounts Payable:

•   Independent Contractor Memorandum Agreement.  $4999.00 and below  or $5000.00 and above.  Please state on the form that “All work associated with this contract was performed outside the United States”.

•   Form W-8BEN, Certificate of Foreign Status. This form is to be completed and signed by the nonresident alien.