Hiring or engaging a worker for a non-U.S. location
Employing or engaging individuals to carry out activities in non-U.S. locations can be challenging. Finding the right talent, understanding what to pay and complying with payroll, taxation and legal right to work requirements in foreign countries can be complex. As in the United States, most other countries have laws governing the employment status of workers in that country. It is important to ensure we understand Dartmouth's obligations regarding international activities and that any proposed activities we might conduct are compliant with those laws. Failure to properly understand and follow the laws and guidelines can expose Dartmouth and the individual to taxes, additional liabilities and potentially legal penalties. The purpose of these guidelines is to ensure that international aspects of your research, project, or program are conducted in a compliant manner. These guidelines should be followed, and the documentation completed and submitted prior to engaging anyone to provide services outside the United States.
Engaging an individual to perform services for Dartmouth outside of the United States requires an evaluation process led by a team from Human Resources (HR), Global Dartmouth, Controller's Office, Office of General Counsel (OGC), Risk and Internal Controls, and Procurement to determine whether the individual should be classified as an employee or an independent contractor and whether Dartmouth has the necessary infrastructure in place to support the contemplated arrangement. This classification and Dartmouth's capacity to enter into such arrangements has implications on how the individual will be paid as well as their tax and immigration status.
There are many different types of roles for which you may be hiring or engaging individuals to conduct overseas-based activities including, but not limited to: short-term consultants, lecturers, data collectors, translators, researchers, and program administrators or directors. These resources fall into one of the following categories:
Risks associated with overseas hires or engagements:
Before engaging an individual to perform work for Dartmouth, we need to establish if that person should be classified as an employee or as an independent contractor. There are several reasons it is essential to make this determination before hiring a resource. Specifically, Dartmouth must ensure compliance with:
How does Dartmouth determine if an individual should be classified as an employee or an independent contractor?
The classification of an individual as either an employee or an independent contractor requires a careful analysis of the relevant facts and circumstances and applicable laws. To reduce risk for Dartmouth, HR, Controller's Office and OGC have created an advisory team and a centralized process for determining the status of workers hired or contracted in countries outside of the United States. To facilitate this process, we have created an International Staffing Questionnaire to provide relevant information for determining the appropriate classification.
The International Staffing Questionnaire ("the questionnaire") should be completed to the best of your department's ability to help the advisory team determine the individual's status with Dartmouth and to clarify options for hiring/engagement. The form should be submitted to Controllers.Office@dartmouth.edu.
Once the questionnaire is submitted, the advisory team will work with the department to determine the appropriate classification and process for hiring or otherwise engaging an individual. Additional information may be requested, and other subject matter experts and external advisors may be consulted, as needed.
What happens next?
The advisory team will advise you of available options and the appropriate process and timeline for hiring/engaging the individual. Depending on the location of the work, it may take time to engage consultants to identify the legal requirements. Requests for international staffing should be submitted as soon as possible after the staffing need is known.
How do we move forward with engaging individuals in a foreign country?
If it is determined that the individual should be classified as an employee, and the department would like to hire the individual, Dartmouth will hire the individual based on the appropriate options for the circumstances.
Note that not all circumstances would support Dartmouth College directly employing individuals in foreign countries. Other options may include the following if certain criteria are met:
Where circumstances require such alternative employment options, the Controller's Office in collaboration with HR and OGC, will provide an estimate of the associated costs to the department and assist with establishing the appropriate hiring process. Costs for initial legal, tax, and employment consulting to identify the requirements for a location will be covered by central funds, with Provost and Executive Vice President approval. The cost for establishing service required and all payroll, benefit, and related costs will be borne by the appropriate departmental or grant funds and should be included in the activity's budget.
How does Dartmouth setup an independent contractor?
If the advisory team concludes that the resource should be classified as an independent contractor, the contractor must be established though Procurement processes for independent contractors and payments will be processed through Accounts Payable.
Regardless of the duration of the assignment or the number of individuals retained, work performed overseas can present a range of legal, financial, safety, and logistical considerations that create complications and add expense. Poor planning can result in immigration issues, tax penalties, and other avoidable costs. If you require additional guidance or have questions, please contact the following individuals.
Faculty on Sabbatical
Temporary Travel by U.S. Based Employee