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 allowable tax exemptions withholding agents can apply, such as whether income might be considered exempt as foreign sourced when paid to a nonresident alien for activities occurring outside the U.S.
If you have any questions regarding payments to foreign individuals that are not answered below, please contact International Payee Tax Compliance
Harvard generally collects, or withholds, three types of taxes: Federal, State, and/ or Social Security/Medicare (FICA), liability for which is based on several factors:
- U.S. tax residency status (determined by the Sprintax Calculus tax determination software)
- Whether the income is considered U.S. or Foreign- Source
- Visa Type/ Immigration Status and Eligibility for Payment
- Payment/ Income type
- Eligibility for tax treaty benefits