Policy Title:  Payment to Foreign Vendors     

Policy Title:  Payment to Foreign Vendors     

Policy Number:  6.2

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Purpose: Payments to foreign vendors for services (honorarium, consulting, goods and services) are generally subject to additional withholding taxes. The Internal Revenue Code requires the withholding of tax on residents of countries other than the U.S. (non-resident aliens) unless a tax treaty exists. Payments to foreign persons paid U.S. source income must be reported to the payee and IRS on IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding on an annual basis.

Prior to anyone purchasing any foreign goods or services on behalf of Eastern Wyoming College, please contact the Accounts Payable office before committing College funds.             Accounts Payable will request the staff or faculty member obtain a Form W-8BEN from the vendor in addition to other items necessary for these purchases prior to any purchases or agreements to purchase foreign vendor items.  For foreign vendors claiming a tax treaty exemption, the staff or faculty member shall obtain Form 8233 directly from the foreign vendor to exempt them from withholding requirements that apply to compensation for personal services.

 

Original Adoption Date: 10/10/17

Revision Date(s): 

Date reviewed, no change: