To: UW-Madison Divisional Business Representatives and Financial Manager Meeting Representatives, UW-System Controllers, UW System 1099MISC/1042-S/W2 Contacts, UW System Administration
From: Jose A. Carus, Jr., Tax Compliance Manager
Subject: New- I-94 Requirements for Nonresident Aliens (NRA) from Visa Waiver Countries
As all of you who deal with Nonresident Aliens (NRA) are aware of, we are required by homelands Security and the Internal Revenue Service (IRS) to obtain certain documents when making payments to Nonresident Aliens (NRA). This included a copy of the NRA’s passport (picture page) and the I-94, along with other documents depending on the visa status of the Nonresident Aliens (NRA). A flowchart with all the required documents and paperwork has been available since 2004 at the Tax Information web page at http://www.bussvc.wisc.edu/acct/tax.html under the first bullet in the How-To section.
Homeland Security has now implemented a new system where they will no longer be issuing an I-94 for Nonresident Aliens (NRA) from visa waiver countries that come to the U.S. under the Visa Waiver Program. Under the new system called Electronic System for Travel Authorization (ESTA) all Visa Waiver Program (VWP) travelers must submit an application to U.S. Homeland Security using ESTA. The cost of this application as of 04/20/2011 is $14. The VWP traveler enters their personal information into ESTA and, if approved by ESTA, the VWP traveler is given an ESTA authorization document. This ESTA Authorization document is normally valid for two years at which time the VWF traveler must re-apply through ESTA. The authorization document can also be viewed and printed from the ESTA web page at https://esta.cbp.dhs.gov/esta/ by the applicant at any time by entering certain personal information (first name, family name, date of birth, passport number, and country issuing passport).
Important Note: With the new ESTA system, if a country is part of the Visa Waiver Program they do not have a Visa but in order to receive any payment from a U.S. Entity they must show the paying entity (1) ESTA Authorization, and (2) the Homeland Security Stamp in their passport for their current trip to the U.S. These documents must be attached to the Accounting Services Payment processing forms (Payment to Individual Reports, etc.), along with the photo page of the passport, in order for payments to be processed for Nonresident Aliens (NRA).
We have updated our Tax Information web page at http://www.bussvc.wisc.edu/acct/tax.html with the new information and requirements mentioned above. The flowchart in the How-To section has been updated and the bullet in the Documents section labeled Visa Waiver Program has also been updated. The updates also include samples of the (1) ESTA Authorization, and (2) the Homeland Security Stamp. I am also asking out webmaster to post this e-mail on the Tax Information web page at http://www.bussvc.wisc.edu/acct/tax.html under the Document section for reference purposes. The direct link is: http://www.bussvc.wisc.edu/acct/tax/I94Requirements.docx.
Please pass this on to all your departments and staff that are involved in making payments to Nonresident Aliens (NRA).