Confused about how and when someone might be assessed the Massachusetts performers tax?
Unsure what object code to use for a performer inside or outside of Massachusetts or when an exception may apply?
Want to know when something is considered an honoraria?
Effective 7/1/2021, object codes have been updated to include one for performances held outside of Massachusetts as well as a new one for non-performance honoraria payments to individuals. A Zoom brown bag session to review new performer object codes and processes is scheduled for Thursday, July 22...
Confused about how and when someone might be assessed the Massachusetts performers tax? Unsure what object code to use for a performer inside or outside of Massachusetts or when an exception may apply? Want to know when something is considered an honoraria?... Read more about Performer Object Codes and Brown Bag Session
Income paid to foreign entities, such as royalties, patents, copyrights, rents, and personal services, generally can trigger a statutory tax withholding of 30% when the income is considered U.S. sourced. All payments processed to foreign entities require a tax review. Foreign entities may begin to incur tax withholding on payments that historically did not trigger taxes. A valid W-8 can possibly reduce or exempt tax withholdings, if eligible, and the valid claim has been made with Harvard before payment has been processed.... Read more about Buy-to-Pay Tax Review Process for Non-US Based Foreign Entities
Indicate “Location of Activity” country when processing payments to Foreign Individuals and Foreign Entities
Harvard is required to indicate the “location of activity” when paying income to foreign individuals and foreign entities due to IRS tax withholding and reporting compliance needs. Most often, this is seen when the departments are asked to provide the country of the activity when processing payments in Accounts Payable. Generally, the location of the activity would be where a service is being performed or the location where fellowship income is expected to be utilized in support of one’s scholarship or research. Royalties, copyrights, and patents, such as those paid for the use of intellectual properties (i.e., industrial properties and software licenses), are considered U.S.-sourced if utilized by Harvard due to our U.S. location.... Read more about Policy Service Announcements (PSAs): Location of Activity and Harvard Donations
(If a previously claimed tax treaty exemption has already being facilitated by Harvard in the current calendar year 2020)
Per IRS regulations, tax treaties must be renewed annually for employees that will continue their work for Harvard in the U.S. into January of the next calendar year. To meet these requirements and claim a tax treaty exemption for 2021 (if previously determined eligible in 2020), employees MUST complete the three steps below before 5pm on Friday, December 18th, 2020. The renewal process generally takes less than 15 minutes...