SUBJECT:

Payments to B-1 and B-2 Visa Holders

This notice is to update and add to the policy regarding the tax
treatment of payments made to B-1 and B-2 visa holders. This change is
effective immediately and supersedes previous notices on this subject.

Holders of B-1 and B-2 visas are subject to the following payment
limitations THIS HAS NOT CHANGED:

B-1 Visa (Visitors for Business)
________________________________

B-1 visa holders may be reimbursed for incidental traveler, meals , and
lodging expenses; however, a B-1 visa holder is not allowed to receive any
salary or other remuneration from any University source.

B-2 Visa (Visitors for Pleasure)
________________________________

B-2 visas may not receive payments of salary or other remuneration,
including reimbursement for incidental expenses from any University source.

The change is to the sanctions now imposed under Executive Order 12989
which states that an employer not in compliance with the above policy of
the Immigration and Naturalization Act may be debarred from receiving
Federal contracts. Just to emphasize the importance of compliance,
violation of this order would jeopardize the ability of UCSD to receive
Federal research awards. Therefore, all university personnel must be in
compliance with the limitations stated above when making commitments and
when requesting payments to B-1 and B-2 visa holders.

Additionally, we should also be reminded that under sections 274A(a)(1)(A)
and 274A(a)(2) of the Act, it is unlawful to knowingly hire an
unauthorized alien.

If you have any questions, please contact the following:

Disbursements: Robin Posner, extension 40859, e:mail rposner@ucsd.edu
Payroll: Paul Rodriguez, extension 43241, e:mail
prodriguez@ucsd.edu

Donald A. Larson Assistant Vice Chancellor