Bryant University is required by the IRS to comply with specific federal tax withholding and reporting regulations when issuing payments to non-resident alien individuals. The types of payments affected include compensation, wages, honoraria, scholarships, fellowships, gifts, prizes, awards and, in some cases, reimbursement for travel expenses. The general IRS rule is to withhold taxes at a rate of 30% for all payments made to non-resident alien individuals performing services in the United States.
All payments to nonresident aliens or foreign vendors require a completed form W8. A/P provides necessary information to HR for tax reporting purposes.