Hello and welcome to Just Answer my name isXXXXX need to file a W-9 form to obtain a valid taxpayer identification number from an individual and substantiate that they are not subject to backup withholding. As far as reporting this income to the IRS on a 1099 misc form is concerned, you would not be required to report these earnings if you paid these individuals less than $600.
As far as the W-8 form is concerned....
Do you agree with assessment that subject compensation is not payment for services rendered?
The instructions for the W8 talk about income from compensation for or in expectaion of services performed. I am thinking that subject compensation does not fall under this category. And clearly none of the others fit
It would be classified as other income on form 1099 if $600 or more
You should not file the W-8 form if the income is less than $600
Is there any rule against paying Canadians subject compensation less than $600
these are students who are not eligible for employment in the US without going through a special application process. Since it is not a job, I need some evidence to show the accountants that we can pay them. i.e. the IRS doesn't care if we give these canadian students $200
I don't believe there is any rule that prohibits you from paying Canadians less than $600
Any thoughts on some obscure line in the tax code that would convince our accountants?
I'll look into that give me a while
In IRS publication 519 on page 46 you do not need to file a US Non Resident Alien form 1040NR if you were a non resident alien student who was temporarily present in th USA under a F J M or Q visa.
I will present this info to our administration and see what happens. Thanks for your help