Honoraria/Compensation for Services: Canadians
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Passports
- Beginning in January 2007, Canadians entering the U.S. by air are required to present a valid passport or a valid frequent traveler program card (NEXUS Air card). The NEXUS Air card is limited to citizens of Canada and the United States and permanent residents of each. Obtaining the card requires a special application and is used for frequent visitors. The card resembles a driver’s license and requires a retinal scan for identity verification.
- Beginning in January 2008, Canadians who enter the U.S. by land or sea are required to present a valid passport or other approved secure documents denoting citizenship and identity.
- Beginning in June 2009, Canadians entering the U.S. by land or sea will be required to present a valid passport or valid frequent traveler program card (NEXUS OR FAST).
- Thus, it is still possible for a Canadian visitor to arrive without a passport.
Visas
- Canadians do not yet need to go to a U.S. consulate to obtain a visa for entry to the United States. The U.S. waives this requirement for all visa types. Thus, short-term visitors, professors, scholars, or students may legally arrive with no visa stamp in their passports.
I-94 Card
- Many short-term visitors from Canada will not receive I-94 cards when they cross the border. A Canadian visitor who has not received an I-94 card at the border should be considered in B-1 status for purposes of payment.
Other immigration documents
- Canadian F-1 students must have an I-20 (just as other F-1 students) and Canadian J-1 students must have a DS-2019 (just as other J-1 students). Unlike students from other countries, Canadian students do not have to visit a U.S. consulate to obtain a visa. Instead, they show their immigration document at the border and receive an I-94 card with F-1 or J-1 written on it as appropriate.
Payment Procedures:
Departments should refer to financial and purchasing policies and procedures to determine the appropriate system to use when processing an honoraria or compensation for services payment for a short term visitor. For tax purposes, honorarium or compensation for service type payments are generally subject to income tax withholding unless an exemption applies. Travel reimbursements may be excludible from income if the travel is substantiated under the accountable plan rules.
In order to pay a Canadian visitor an honorarium or compensation for services, the department must collect the following documentation:
- Tax Cover Sheet-International Short-Term Visitor
- Copy of I-94 Departure Card (if available)
- Form W-8BEN, Part I, questions 1-6 and Part IV.
If the short-term visitor is a tax resident of Canada the visitor may be eligible to receive an exemption from the required income tax withholding. In order to apply for a treaty based exemption, the visitor must complete an International Tax Questionnaire (ITQ).
The tax department will process the tax questionnaire and determine if the individual is eligible to receive tax treaty benefits. If eligible, an IRS Form 8233 will be generated for the visitor to review and sign.
A U.S. tax ID number, or proof of application for a U.S. tax ID number, is required before Indiana University can generate the Form 8233.
If the visitor does
not have a U.S. tax ID number but wishes to apply for one during their visit to IU, see
Applying for an ITIN to determine the appropriate process for your visitor.
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