Whether an individual is an actual independent contractor, and not an employee, has important implications for the policies, procedures and payment processing requirements that should be taken into consideration.

• For IRS information, see IRS Publication 1779 Independent Contractor or Employee
• Independent Contractor policy

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Whether receiving or making payments, Harvard guidelines and U.S. tax/immigration regulations must influence the end result, including how the payment will be taxed. There are various compliance issues of which to be mindful, and numerous laws by which to abide, that will collectively determine the direction one should take. Work authorization, income category, visa type, tax residency status, and tax treaty eligibility are some of the many factors that influence how a payment to a foreign national should be processed.

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Use these guidelines to better understand tax obligations of Harvard employees working outside the United States. For general information on tax obligations of all Harvard payment recipients outside the U.S., please see U.S. or Foreign-Source Income.

Topics covered below:

• U.S. Citizens and Resident Aliens Working Outside the United States

• Nonresident Aliens Working Outside the United States

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Social Security and Medicare taxes, or "FICA" tax (approx. 7.5% of gross income), are collected by Harvard University but administered independently by the U.S. Social Security Administration. Non-student U.S. citizens, lawful permanent residents, and resident aliens (as designated by the Sprintax Calculus tax compliance system) are subject to FICA taxes on salary and wages earned as an employee. 

It may be possible to refund FICA taxes incorrectly withheld by the University: 

• To determine if FICA taxes were incorrectly withheld in the current...

Nonresident aliens for tax purposes and foreign entities, unlike U.S. persons and U.S entities, are only subject to tax withholding on income that is considered U.S.-sourced and not foreign-sourced. In order for Harvard to consider income as foreign sourced, the foreign payee must have attested to their foreign status by submitting a completed W-8. Instructions for form W-8BEN for foreign individuals is accessible directly from the IRS website.

Harvard is required to indicate the “location of...

Employment compensation, or a salary, is taxed at marginal graduated rates, meaning income earned over certain levels set by the U.S. tax authorities is taxed at progressively higher rates. Please see the section on income tax withholding tables in IRS Publication 15 to get an idea of how your salary will be taxed by Harvard.

• If eligible for tax treaty benefits, both nonresident aliens and resident aliens can claim exemption from tax withholding by submitting completed tax...

Please note: In January 2024, Harvard launched Sprintax Calculus as our tax determination software for international payees (non-U.S. individuals and entities). This software replaced Glacier. Visit our Sprintax Calculus page for more information and resources.

Deadline to claim *new* tax treaty exemption for current calendar year 2024: If GLACIER (see Note 1) determined you were possibly eligible to claim a tax treaty...

Payments from Harvard University may be subject to tax withholding and/ or reporting in accordance with regulations strictly enforced by the U.S. tax and immigration authorities. As a withholding agent, Harvard University is required to collect the appropriate IRS certification form (W-8BEN or 8233) from nonresident aliens to establish their foreign status. Sprintax Calculus will generate the necessary IRS forms when paying a foreign supplier that has U.S. presence. In addition to the payment and reporting details, IRS certification form W-8BEN informs what statutory tax withholding or...