Paying Non-Resident Alien Individuals for Services: Tax Withholding and IRS Reporting | Product

Are all of your organization’s payments to nonresident alien individuals, for services to your organization, being captured for correct income tax withholding and reporting to the IRS?  This program will help you build a strong compliance record by clarifying who’s a “U.S. person” for tax purposes … who is a resident alien for U.S. tax purposes … and who is a nonresident alien subject to 30% withholding.  From company directors to consultants, athletes to guest speakers, technical or equipment service providers to creative artists and performers, most organizations are now making increasing numbers of payments to nonresident alien individuals as compensation for services provided within the United States – resulting in a higher profile for potential errors or omissions in compliance with the federal regulatory requirements for withholding tax and reporting tax information to the IRS.

This program will cover:

• Identifying and documenting individuals whose status is “non-U.S.” for tax purposes: Form W-8BEN; Form 8233; the Substantial Presence Test; rules for presumption of status 
• U.S. federal income tax withholding requirements: standard 30% rate of withholding; reduced rates available under income tax treaties 
• Deadlines for deposit of withheld tax 
• Reporting to the IRS on Form 1042-S 

Learning objectives:

• Correctly identify nonresident alien individuals who’ll be reportable to the IRS on Form 1042-S for tax purposes 
• Correctly withhold U.S. federal income tax when required.