Payments to foreign nationals are complicated due to immigration and tax laws.
Immigration law addresses whether it is legal to make a payment to a foreign national for services performed within the U.S. The determination is based on visa classification and type of payment involved.
Tax law addresses whether taxes must be withheld on a payment made to a foreign national and whether the payment must be reported on form 1042-S.
As a general rule, Cornell must withhold and pay 30 percent in U.S. federal taxes on all payments made to foreign nationals for services performed within the U.S.