Can Wesleyan reimburse an F-1 non resident alien attending another school for expenses?
Yes, however if travel expenses/reimbursements are paid to a student who is studying and not performing services, the expenses are considered a scholarship or fellowship and not business expenses. Accountable Plan rules only apply to business expenses. The payments are subject to 14% withholding and reporting like any other taxable scholarship. Unless a student treaty article applies to exempt nonqualified scholarships from tax, and the individual submits a completed W-8BEN with a TIN on it, 14% federal tax must be withheld on even reimbursements to F-1s. Whomever makes the payment is responsible for withholding and reporting on a 1042-S. Wesleyan can reimburse an F1 student who is sponsored by another institution, however Wesleyan must withhold 14% and issue a 1042-S.
