• Report to International Student & Scholar Services upon arrival  to record passport, I - 94,  Page 3 of the DS - 2019 and medical insurance policy.  Records for dependent(s) will also be required. 
• Apply for a social security card or an Individual Tax Identification Number (ITIN) to receive payments and file an income tax return.
• Complete an IRS Form I - 9, verifying eligibility to work in the U.S. and submit the form to the department secretary.
• Make an appointment with Ms. Sandy McKitrick in the Payroll Office. Telephone: (330 - 672 - 2637) to discuss withholding, tax obligations, and the terms of the bilateral tax treaty, if one exists between the U.S. and the scholar's country of citizenship.

In general, the hosting department or faculty member bears primary responsibility for ensuring that payments to international visitors are in compliance with applicable KSU policies and procedures concerning tax laws and regulations.

It is possible that certain types of payments to an international visitor are taxable, while other payments to the same visitor are not taxable. Also, certain payments that are taxable to one international visitor may not be taxable to a visitor from a different country because of the terms of a tax treaty. 

It is important that the taxability (or non-taxability) of each type of payment made to each international visitor as discussed in the following sections be determined in consultation with a tax/payroll specialist in order to know whether withholding is required and, if so, the amount required to be withheld from payment.  Types of payment include the following:   

All employee wages, independent contractor payments, and taxable portions of fellowship payments that an international visitor receives are considered taxable income, unless they are specifically exempted from tax by a tax treaty or as foreign source income. Tax treaty exemptions must be determined on a country-by-country basis.

Employee wages can only be paid to international visitors who have been granted an appropriate employment authorization and visa status by the Bureau of Citizenship and Immigration Services, DHA.

Withholding is a pre-deposit of taxes that an international visitor is obligated to pay. The specific amount is deducted from each pay period and is pre-paid by KSU on behalf of the visitor. The preferred goal is to have enough withholding to cover the annual tax obligation. Withholding is offered for federal, state, and local taxes.

State of Ohio and Local Taxes are obligations of the international visitor; yet, neither the State of Ohio nor the local municipality is bound by international tax treaties.

Medicare Tax (FICA) is the portion of the tax assessed on employee wages under the Federal Insurance Contribution Act (FICA), which is used to fund health insurance benefits for the elderly that are paid by the Social Security Administration (SSA). It is applicable to resident aliens and to some non-resident aliens. A non-resident alien not intending to establish permanent residency in the United States is not required to pay Medicare and FICA taxes, since care and support under these programs are a privilege of citizenship. This exemption is for the first 5 years of employment. Individuals who have paid these taxes even though eligible for the exemption, may petition the Social Security Administration for full reimbursement of the payments.

Tax Treaty

The US has concluded and maintains tax treaties with approximately 50 countries in the world. Each is specific to the bilateral relationship between the US and that country, so each is slightly different from the rest. The encompass expert in this area is Ms. Sandy McKitrick, Payroll Office, telephone: 330 - 672 - 2637.

Post-doctoral fellowship awards are made to further the pursuit of a course of study or research beyond the doctoral level. The entire post-doctoral fellowship award is included in taxable income. Awards made in return for services rendered as a post-doctoral fellow are employee wages.

Payments that are made by KSU to nonresident aliens for services that the nonresident alien performs in a country outside of the US, are not subject to income tax withholding. This exclusion applies only for services performed in a foreign country by an individual who is not a citizen or resident of the United States. The services are considered to be “sourced” in a foreign country and, therefore, are not subject to income tax withholding.

Fellowship and scholarship grants that are paid for with funds originating outside of the United States are not subject to income tax withholding. Such grants are considered to be “sourced” in a foreign country and, therefore, are not subject to income tax withholding.

Independent contractor payments are for services performed by international visitors that are outside the scope of employment and are taxable unless excluded under a tax treaty. Independent contractors are not the same as employees. 
Services as an independent contractor must have all of the following characteristics: 

• The international visitor must not be under the direction or control of any faculty, or staff, in regard to the means or methods that are being used to perform services.
• The service or task being performed is of short duration and will not result in the international visitor entering a long-term working relationship.
• A written contract or agreement exists that identifies the services that are to be performed.