Travel Reimbursements: J-1 Non-Students
|
The J-1 category is an option for short-term visitors for whom we wish to reimburse travel for an activity longer than
nine days. There are two groups of J-1 visitors who may be at IU for a short period (1) J-1 Short-Term Scholars on a document
prepared by Indiana University and (2) J-1 scholars or professors (or members of other J categories) who are in the United
States on documents prepared by another university.
J-1 Short-Term Scholars Sponsored by Indiana University
If you wish to reimburse travel for an individual for an activity lasting longer than nine days, but not longer than six
months, and that individual is currently outside the United States, then you may wish to consult with the international
office to determine the best visa option. A B-1 or WB visa might be sufficient if only travel reimbursements will be made.
If travel reimbursements are considered in addition to an honorarium, the J-1 Short-Term Scholar category may be a good option.
It is best to begin the process at least two months before the visit. The more advance notice the better.
- Contact the international office. Campuses served by the Bloomington Office of International Services can initiate this
process by completing the J-1 Application process in iStart [https://istart.iu.edu/istart/controllers/admin/adminengine.cfm].
Other campuses will be using this starting point in the future. The international office can advise on the advantages and
disadvantages of this status for particular cases.
- If you decide to pursue this option, the international office will prepare a DS-2019 and send it to you.
- You should send it to the future visitor (express mail is advisable).
- The future visitor must take this document to the US consulate or embassy as part of an application for a J visa. If the
visa is granted, a stamp is placed in the visitor's passport. (Canadians do not need to take this document to the consulate.)
- The visitor presents this passport and the DS-2019 when entering the U.S.
- When the visitor arrives on campus, the visitor must check in with the international office.
- When the visitor departs, the department must inform the international office.
Health Insurance. Federal regulations require all J-1 visitors to have adequate health insurance coverage
during their stay in the U.S. A waiver of the I.U. mandatory coverage can be given only if the specifics of the visitor's
insurance coverage meet the minimum level required ($50,000 per illness or accident, $10,000 medical evacuation, and $7,500
repatriation). Advise visitors to bring a copy of their policy with relevant points in English, or to purchase insurance from
I.U. at a weekly rate.
J-1 Visitors Sponsored by Other Institutions
Most J-1 visitors who are sponsored by other institutions may receive reimbursement of travel expenses for a brief activity
at IU. These visitors are usually already in the United States at the institution that prepared their DS-2019. Before you agree
to reimburse travel for non-IU J-1 visitors, the visitors must consult with the foreign scholar advisor at their sponsoring
institution to assure that they meet the standards of the sponsoring institution for accepting the travel reimbursement.
Payment Procedures
Travel reimbursements are not considered taxable income and are not subject to income tax withholding if the payment is made
under an accountable plan. Accountable plan rules require the following criteria to be met:
- Substantiation of lodging, airfare, and other expenses within a reasonable time
- Travel was incurred in order to conduct business away from home
- Purpose of travel, times and dates of travel are identified
When payment for travel expenses are paid for an individual who is not conducting business for the university, or when
the payment is made under a nonaccountable plan, that payment will be considered fellowship income. If the recipient is
an international visitor, the IU tax department may be required to withhold taxes from this payment.
In order to pay travel expenses on behalf of a J-1 visitor, the department must submit the following
documentation with the travel payment request:
- Tax Cover Sheet-International Short-Term Visitor
- Copy of I-94 Departure Card
- Form W-8BEN, Part I, questions 1-6 and Part IV.
|
