Information for Independent Contractors

Payments made for services to individuals that are not considered employee wages are initiated in Payment Works. Once the Payment Works application is completed, individuals will receive an email from noreply@sprintax.com to complete Sprintax Calculus to determine taxation.

Unless exempted by a treaty, payment is subject up to 30% tax. Payment recipients will receive a 1042-S by March 15th of the following year after the payment is disbursed.

Common Non-Employee Visa Types:

• B-1 Visitor for Business. No employment permitted. May reimburse for expenses only. Except for honoraria from a college or university if the visitor meets the 9/5/6 rule: a) No more than 9 days at the University and has not been paid by more than 5 other universities within the last 6 months.
• B-2 Visitor for Tourism. No employment permitted. Except for honoraria from a college or university if the visitor meets the 9/5/6 rule (see above).
• TN-1 Treaty NAFTA (Canada). Restricted employment. Authorized to work only for the petitioner.
• TN-2 Treaty NAFTA (Mexico). Restricted employment. Authorized to work only for the petitioner.

Visit the Directory of Visa Categories for more information about visa types.

Foreign Source Income Exclusion

Payments made by the University to Nonresident Aliens for services performed in a country outside of the United States, are not subject to taxes, nor is there any U.S. reporting obligation. This exclusion only applies to individuals who are not U.S. residents or citizens. The services are considered to be “sourced” in the foreign country and therefore not subject to U.S. tax laws.