N Trade NAFTA Visa Type

General Information

• The NAFTA trade agreement created a non-immigrant category for Canadian and Mexican professionals to enter the US and work.
• Like the H-1B, it is for professional positions which must require a minimum of a Bachelor's degree in a specific field, and the individual must have the specific degree.
• Although the TN applies to Mexican citizens, it is of little practical value, as the same processing steps must be followed as for an H-1B.
• Therefore, UW-Madison uses the TN almost exclusively for Canadian citizens ("landed immigrants", the Canadian equivalent of permanent residents, do not qualify).
• This is a temporary status and TNs should not intend to immigrate. The main advantage of TN status is that no prior INS processing is necessary; the Canadian can get the classification at the border.

Type(s) of Payment Allowed

• Salary
• Honorarium (Payment for Services)
• Travel reimbursement

Visa Application Process

• Contact the United States Immigration and Naturalization Services.
• no advance processing required; the Canadian does it at the border upon entry

Length of Stay Allowed

• Annually renewable, no maximum

Special Conditions/Requirements

• limited to Canadian citizens, not landed immigrants.
• cannot intend to immigrate.
• Medical Doctors’ activities are limited to research and teaching; no patient care

Required Documents Summary

• Appointment letter from hiring department which includes: full job description; minimum education and/or experience requirements; proposed dates of employment; annual salary.
• Proof of Canadian citizenship
• Proof of qualifications
• Application fee
• IRS Form W-8BEN for tax reportable payments
• Immigration and taxation documentation outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart).
• Refer to 203 Payment for Services and Travel and Expense Reimbursement for Non-employees

Forms Required for Payroll Payments (Employees paid through the Human Resource System (HRS)

Salary

• Contact you Dean’s Office Payroll Representative for additional documentation required for completing the I-9 Verification and other required documents to set up the employee on the Human Resources System (HRS).

Forms Needed for Non-Payroll Payments (Non-employees paid through Accounting Services)

Policy:

• If payment involves travel related expenses/reimbursements please make read and follow Policy and Procedures: 203 Payment for Services and Travel and Expense Reimbursement for Non-employees.

Travel Reimbursement

• For campuses using E-Reimbursement (UW-Madison):
  • Documented travel expenses must be processed through E-reimbursement.  See Policy: 203-Payment for Services and Travel and Expense Reimbursement for Non-employees.
  • If payment involves travel related expenses/reimbursements please make read and follow Policy and Procedures: 203 Payment for Services and Travel and Expense Reimbursement for Non-employees.
•  For campuses not using E-Reimbursement:
  • Use a Payment to Individual Report (PIR)
    
  • Immigration documentation required are outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart).
  • If payment involves travel related expenses/reimbursements please make read and follow Policy and Procedures: 203 Payment for Services and Travel and Expense Reimbursement for Non-employees.  All Policy and Procedure 203 apply except that instead of using E-Reimbursement you use a PIR.

Honorarium

• Use a Payment to Individual Report (PIR)
• IRS Form W-8BEN for tax reportable payments.
• Immigration documentation outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart).
• Social Security Number, Individual Taxpayer Identification Number (ITIN), or copy of completed/signed/filed ITIN application required.
• Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, if tax treaty exemption applies.  To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or Accounting Services Policy and Procedure: 601-Tax Compliance, Reporting, and Withholding on Non-Salary Payments under Nonresident Aliens (NRA), Visas, Restrictions and Tax Treaties (direct link is Restrictions and Tax Treaties).

Participant Support

• Use a Payment to Individual Report (PIR)
• IRS Form W-8BEN for tax reportable payments.
• Immigration documentation outlined at Required Documents for Payment, including applying for U.S. Individual Taxpayer Identification Number (ITIN) (Flowchart).
• Social Security Number, Individual Taxpayer Identification Number (ITIN), or copy of completed/signed/filed ITIN application required.
• Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, if tax treaty exemption applies.  Treaty must include a provision for Scholarship/Fellowship Grants.  To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or Accounting Services Policy and Procedure: 601-Tax Compliance, Reporting, and Withholding on Non-Salary Payments under Nonresident Aliens (NRA), Visas, Restrictions and Tax Treaties (direct link is Restrictions and Tax Treaties).

Tax Liability/Withholding:

Social Security

• No FICA withholding since no employment is permitted

Federal

Salary

• Contact you Dean’s Office Payroll Representative for additional documentation required for completing the I-9 Verification and other required documents to set up the employee on the Human Resources System (HRS).
• Documented travel expenses are considered business expenses of the UW and thus no federal tax is withheld
• Honorariums (Payment for Services) require withholding of 30% federal tax, unless tax treaty exemption applies and Form 8233 is filed.  To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or Accounting Services Policy and Procedure: 601-Tax Compliance, Reporting, and Withholding on Non-Salary Payments under Nonresident Aliens (NRA), Visas, Restrictions and Tax Treaties (direct link is Restrictions and Tax Treaties).
• Participant support, 14% withholding, unless tax treaty exemption applies and Form W-8BEN is filed.  To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or Accounting Services Policy and Procedure: 601-Tax Compliance, Reporting, and Withholding on Non-Salary Payments under Nonresident Aliens (NRA), Visas, Restrictions and Tax Treaties (direct link is Restrictions and Tax Treaties).

State

Salary

• Contact you Dean’s Office Payroll Representative for additional documentation required for completing the I-9 Verification and other required documents to set up the employee on the Human Resources System (HRS).

Honorarium (Payment for Services)

• None

Travel Reimbursement

• None