Handbook of Business Procedures
Date published: Dec. 2, 2010
Last revised: June 22, 2011
Issued by: Tax Services
12.5.4. SERVICES PERFORMED BY INDEPENDENT CONTRACTORS
For visiting lecturers, conference participants, individuals conducting collaborative research, and other people qualifying as independent contractors for their service/honoraria payments, the visa/immigration status will be relevant if services are provided inside the U.S.
A. Services Performed Inside the U.S.
Compliance with immigration law and tax law is required for all individuals who perform work inside the United States. Any preparation done outside of the U.S. that is related to an activity or service performed inside the U.S. is considered a service performed inside the U.S. for tax and immigration purposes.
B. Services Performed Outside the U.S.
If a department engages a nonresident to perform work exclusively outside the U.S., and the nonresident does not come to the U.S. to visit The University of Texas at Austin, these services are not subject to U.S. immigration or tax laws. These payments are not subject to U.S. tax withholding or reporting.
Payment should be processed on a VP2 *DEFINE document, using object code 1326 for services performed outside of the U.S. by a nonresident. The voucher NOTes in *DEFINE must include both the name of the country where services were performed and the payee’s country of residence.