Setup Special Circumstances
Some agencies may need to make payments to businesses outside the United States or to foreign individuals who reside in the U.S. Foreign payees are set up on Payee Master Level Setup (PMSTUP) and Payee Mail Code Setup (PMCTUP) the same as other payees, with a few key differences.
Foreign Payee TINs
- Some foreign payees may have an SSN, EIN or ITIN while others may not.
Note: Agencies should ask a foreign business if the IRS requires them to have an EIN to do business in the U.S. Some foreign countries have treaties with the U.S. that determine whether EINs are required.
- If the payee has not been issued an SSN, EIN or ITIN, a Comptroller-assigned number may be requested as the TIN.
- Search using Payee Name Search (PAYNAM) screen to see if another agency has already set up the foreign payee under a Comptroller-assigned TIN.
- If not, contact Payment Services at (512) 936-8138 to request a Comptroller-assigned TIN.
- If a payee is set up with a Comptroller-assigned TIN and later issued an SSN, ITIN or EIN, submit a Payee Change Request form (74-157) (login required) PDF to Payment Services for a number change.
Note: Do not process the SSN, ITIN or EIN as a new payee setup
Foreign Payee Ownership Types
- Foreign entities such as corporations or partnerships without an EIN should be set up with ownership type of R (Foreign Entity).
- A sole owner business where the sole owner is a foreign payee who does not have an SSN or ITIN should also be set up with ownership type R (Foreign Entity).
- Foreign individual payees who do not have an SSN or ITIN should be set up with ownership type I (Individual).
- Foreign state employees who do not have an SSN or ITIN should be set up with ownership type E (Employee).
Screen Example (Foreign Payee PMSTUP – Step 1)
PMSTUP MM/DD/YY PAYEE MASTER LEVEL SETUP - STEP 1 ENTER THE NUMBER PROVIDED BY PAYEE IN THE APPROPRIATE FIELD (ENTER ONLY ONE) _________ SSN - SOCIAL SECURITY NUMBER (9 DIGITS) _________ EIN - EMPLOYER IDENTIFICATION NUMBER (9 DIGITS) _________ ITIN - INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (9 DIGITS) 3XXXXXXXXX0 OTHER - COMPTROLLER-ASSIGNED (11 DIGITS) PRESS ENTER WHEN READY PF3=QUIT
Screen Example (Foreign Payee PMSTUP – Step 2)
PMSTUP MM/DD/YY PAYEE MASTER LEVEL SETUP - STEP 2 PAYEE NUMBER: 3XXXXXXXXX0 INPUT SOURCE: XXX OWNERSHIP TYPE: R TAXPAYER NUMBER: ___________ SOLE OWNER'S NAME: SSN: _________ ITIN: _________ (ENTER ONLY ONE) PARTNER 1 NAME: __________________________________________________ SSN: _________ EIN: _________ ITIN: _________ (ENTER ONLY ONE) PARTNER 2 NAME: __________________________________________________ SSN: _________ EIN: _________ ITIN: _________ (ENTER ONLY ONE) TEXAS CHARTER NUMBER: __________ IAT IND: _ TIN STATUS: A PF3=QUIT
Foreign Payee Mail Code Set Up
When setting up mail codes for foreign addresses, the
ZIP fields need to be entered differently:
|Field||Foreign Address Mail Code Entry|
Two dashes (- -)
Note: This entry populates the
|Zip||Five zeros (00000)|
|Zone Code||See Zone Codes for American and Foreign Territories for the three-digit code|
Note: For sole owners, enter the foreign sole owner’s name in the
Screen Example (PYADDR Foreign Address)
PYADDR.3XXXXXXXXXX.XX1 MM/DD/YY PAYEE NUMBER: 3XXXXXXXXX1 TAXPAYER NUMBER: OWNERSHIP TYPE: FOREIGN ENTITY IAT IND: ACTIVE MC CNT: 1 1099 MC LOOKUP: PF12 NEXT AVAILABLE MC: 001 MAIL CODE: 000 SIC CODE: 9999 SECURITY TYPE: 0 SECURING SOURCE: STATUS: A TELEPHONE: NAME: FOREIGN BUSINESS NAME ADDRESS IND: F ADDRESS: MAILING ADDRESS CITY CITY: COUNTRY NAME STATE: -- ZIPCODE: 00000 ZONE CODE: XXX END OF DISPLAY - PF1=HELP, PF3=QUIT, PF4=MENU