Why does the Nonemployee Expense form include “Is the payee a US citizen or US taxing resident”?
Are we required to attach any additional documentation to the nonemployee ER form if the payee is not a US citizen or US taxing resident?
Additional forms may be required for nonemployee expense reports that are submitted over the 90 day requirement or do not meet all of the requirements of the Business and Travel Expense policy. If this applies, please provide one of the following:
Will non-employee payees be taxed if they submit their expense reimbursements after 90 days?
- Nonemployee U.S. citizens will not have tax withheld from any reimbursements over the 90 day requirement, but reporting to the IRS is required if the amount of the reimbursement is $600 or more.
- Nonemployee foreign nationals/nonresident aliens will most likely have tax withheld from reimbursements over the 90 day requirement and IRS reporting is required on the Form 1042-S.
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