University Payroll Office
Honorarium Payments to Nonresident Aliens

Section G ~ Statement 10B

A. Purpose

This Statement outlines the procedures and forms required to obtain honorarium payment for nonresident aliens.

B. General Guidelines/Applicable Policies

The University Payroll Office is responsible for the processing of honorarium payments to nonresident aliens who are international guests or visitors to the NCSU campus. Honorarium payments to resident aliens and U.S. citizens are the responsibility of the University Accounting Office.

C. Procedures

Honorarium payments to nonresident aliens are processed on the University biweekly payroll. The following forms must be completed and submitted to the University Payroll Office by the Friday prior to the established biweekly payroll cutoff dates. Nonresident Aliens must have a valid United States social security number or must provide a receipt from the Social Security Administration than an application has been made. If the nonresident alien refuses to provide a number or refuses to apply for a number, a Form PYRL12 "Unknown Social Security Number Affidavit" must be submitted. See Section G, Statement 10B, Part C4 for more information.

D. Forms

Applicable departments should keep on hand a supply of blank copies of the Form PYRL01, Form PYRL12, and Form 8233. For a blank of any of these forms, come by University Payroll, Administrative Services Center, Room 222 or email Wendy Griffin.

U.S. TAX TREATIES COVERING HONORARIUM COMPENSATION


COUNTRY			       MAXIMUM		MAXIMUM		TAX
OF		               PRESENCE	        AMOUNT		TREATY
RESIDENCE	               IN U.S.		EXEMPT		ARTICLE
		               (YEARS)	        (PER YEAR)


Australia	                183 Days	 No Limit       14
Austria                         183 Days          $ 3,000       X
Barbados                         89 Days          $ 5,000       14
Belgium	                        182 Days	 No Limit	14(2)(a)(b)
Canada		 	        No Limit	 No Limit	XIV
PR China		        183 Days	 No Limit       13
C.I.S. **		        183 Days         No Limit	VI(2)
Cyprus		                182 Days	 No Limit	17
Czech Republic		        183 Days         No Limit       14
Denmark		 		 90 Days	 $ 3,000        XI
Egypt		 	         89 Days         No Limit       15
Finland			        No Limit         No Limit       14
France			        183 Days         No Limit       14
Germany		 		No Limit	 No Limit	14
Greece			        183 Days         $10,000        X
Hungary				183 Days         No Limit       13
Iceland				182 Days         No Limit       18
India		 		 89 Days	 No Limit       15
Indonesia			119 Days         No Limit       15
Israel				183 Days         No Limit       16
Italy				183 Days         No Limit       14
Jamaica		 		 89 Days         $ 5,000        14
Japan				183 Days         No Limit       17
Korea, Rep. of (South)		182 Days         $ 3,000        18
Luxembourg			180 Days         $ 3,000        XII
Malta			 	 90 Days	 $10,000	14
Morocco				182 Days         $ 5,000        14
Netherlands			183 Days         No Limit       XVI
New Zealand			183 Days         No Limit       14
Norway				182 Days         No Limit       13
Philippines		 	 89 Days	 $10,000        15
Poland				182 Days         No Limit       15
Portugal			183 Days         No Limit       15
Romania				182 Days         No Limit       14
Russia			        183 Days         No Limit       13
Slovak Republic		        183 Days         No Limit	14
Spain			        No Limit         No Limit	15
Sweden			         90 Days         $ 3,000        XI(b)(2)
Switzerland		        183 Days         $10,000        X
Trinidad & Tobago	        183 Days         $ 3,000	17
Tunisia			        183 Days         $ 7,500        14
United Kingdom		        183 Days	 No Limit	14


**	C.I.S. -  Commonwealth of Independent States include Armenia,
Azerbaijan, Belarus, Georgia,  *Kazakhstan, *Kyrgz Republic, Moldova, 
Tajikistan, Turkmenistan, Ukraine, Uzbekistan.






NORTH CAROLINA STATE UNIVERSITY
HONORARIUM PAYMENTS TO NONRESIDENT ALIENS
EFFECT OF INCOME TAX WITHHOLDING

                                                                   

EXAMPLE 1

The visitor is a resident of Brazil, a country with no relevant United 
States tax treaty.

GROSS AMOUNT PAID	$500.00
LESS 30% TAX	         150.00
	NET AMOUNT 	$350.00


                                                                
EXAMPLE 2

The visitor is a resident of Sweden, a country with a relevant United 
States tax treaty.  The visitor has been in the country less than 183 days.

GROSS AMOUNT PAID	$725.00
	NET AMOUNT	$725.00
                                                                  


EXAMPLE 3

The visitor is a resident of Sweden.  He has been in the U.S. for 80 days
and has already earned $2,800 this tax year.  The honorarium payment 
gross amount is $500.  The first $200 of the honorarium payment is exempt 
from tax withholding based on the tax treaty.  The remaining $300 is subject 
to withholding because it will make his earnings exceed the $3000 per year 
exemption limit specified in the tax treaty.  He is subject to income tax at the 
30% rate on the remaining $300.

TREATY LIMIT			            $3000.00
CUMULATIVE AMOUNT RECEIVED	             2800.00
	TAX EXEMPT GROSS	              200.00

GROSS AMOUNT PAID		             $500.00
LESS TAX EXEMPT GROSS	                200.00
	TAXABLE GROSS		              300.00
	FEDERAL 30% TAX		         90.00

GROSS AMOUNT PAID			    $ 500.00
LESS 30% TAX				       90.00
	NET AMOUNT			    $ 410.00
  
                                                                

EXAMPLE 4
The visitor is a resident of Australia, a country with a relevant United 
States tax treaty.  The visitor has been in the U.S. for 210 days, which 
is in excess of the maximum presence in the U.S. allowed under the 
tax treaty for exemption from withholding.

GROSS AMOUNT PAID	$375.00
LESS 30% TAX		 112.50
	NET AMOUNT	$262.50




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