Good Intentions, Clear Rules: Paying Non-U.S. Citizens
Hiring a non-U.S. citizen can provide access for a church or nonprofit to unique skills and global perspective — but it requires careful attention to legal and tax rules and can invite unneeded scrutiny and require significant administrative overhead.
If the individual is physically present in the United States, their immigration status determines whether they can be paid. Most visa types (such as tourist visas) prohibit any form of work. International students, often on F-1 visas, may be eligible for limited employment, but only with prior authorization through programs like Curricular Practical Training (CPT) or Optional Practical Training (OPT).
If a church wants to hire someone in an ongoing role, it typically must verify work authorization through the standard I-9 process or consider sponsoring a work visa — an option that can be costly and administratively complex. That said, the effort can be worthwhile in the right context. For example, sponsoring an R-1 visa for a minister who will lead a non-English-speaking congregation.
It’s a common misconception that paying someone as an independent contractor (issuing a 1099) avoids these restrictions. It does not. If the individual is in the U.S. without work authorization, the organization cannot pay them for services — regardless of whether the arrangement is employment or contract-based. Paying foreign nationals visiting on a B-1 (Business) or B-2 (Tourist) visa for services performed in the U.S. is illegal.
What about one-time projects, stipends, or honoraria for guest speakers or musicians? Aside from a few narrow exceptions in the academic world, IRS regulations are strict. Similarly, having a church member “gift” money to the individual can create risk if the payment is effectively compensation for services. Calling something a gift does not change its underlying nature.
No Visa Needed: Hiring Overseas Workers
By contrast, hiring individuals who live and work entirely outside the United States is often more straightforward. If the person is performing services in their home country, U.S. immigration laws typically do not apply. In these cases, churches and nonprofits usually engage workers as independent contractors and may collect a Form W-8BEN to document foreign status. However, organizations should still consider local labor laws, tax requirements, and currency/payment logistics in the worker’s country.
Many nonprofits address these complexities by using international payroll services or an “employer of record” (EOR), which handles compliance with local employment laws and tax obligations.
In all cases, careful planning is essential. Consulting with an immigration attorney or qualified advisor can help your organization stay compliant while expanding its ministry or mission globally. Once aware of the many complexities and potential pitfalls, many ministries decide against hiring international workers.
Talk with your Auxilio Partner Strategist in advance of any hiring to make sure you are compliant with the employees on your church or nonprofit’s payroll, as well as the contractors you work with. If you’re not yet an Auxilio client partner, contact us to learn how we can serve your church or faith-based nonprofit by reducing your administrative burden to free you up for ministry.
Click here for more insights and resources for churches and nonprofits from the Auxilio team.