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Tax withholding

The tax taken out of a paycheck, which is then paid to the U.S. tax authorities. If too much or too little tax is withheld, the individual will be due a refund or owe tax, respectively, when earnings are reported to the tax authorities the following year.

When should I update my Sprintax Calculus record?

Updates to your immigration status, residency, certain biographical information, and obtaining a U.S. tax ID can greatly impact accurate tax withholding or reporting to federal and state government agencies. It's important that you act with urgency to maintain all of your records at Harvard, which includes Sprintax Calculus.

Examples of required Calculus updates include: extensions to your immigration status, changes in the type of income you will receive from Harvard, obtaining a new U.S. tax ID number, changes in your country of residency or permanent address, etc. If any...

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Sprintax Calculus


Notes on Two-factor Authentication

  • Two-factor authentication is required to use Sprintax Calculus's E-Sign function.
  • Once you enable two-factor authentication, the same method will also be required to log in to Sprintax Calculus during future logins.
  • If you enabled two-factor authentication, please keep the...
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Payment Implications to Annual Reporting

Background: The IRS requires income to reported annually in the calendar year payments are originally disbursed by withholding agents. Harvard must also comply with government regulations that require timely payments to be issued for services rendered, which is codified within Harvard Procurement and Payroll Policies.

Potential Tax Hazard- If Harvard has already issued an annual tax document (i.e., 1099 or 1042S) to a payee, a redeposit request to cancel a check can render a tax document incorrect, requiring Harvard to send the payee an...

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Gross Up for Nonemployee Income

In certain situations, where University and department policies and budgets allow, administrators may wish to “gross up” an income payment to a recipient. The desired outcome may be intended to achieve a specific “net amount”, accounting for required tax withholdings. Gross up payments incur additional expense to the requesting department’s budget, which can be significant.

Reportable income payments processed to or for the benefit of individuals, are reportable for “gross up” amounts paid. Depending on income type and payment circumstances, tax withholding rates can vary...

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What is the “Location of Activity” when processing a payment in Accounts Payable, and why is it important to include?

  • Harvard is required to indicate the “location of activity”, particularly when paying income to foreign individuals and foreign entities, to comply with IRS tax withholding and reporting regulations. A clear indication of the location of the activity (such as the country) is necessary on all supporting documentation for the payment to be correctly classified for tax purposes. This applies to both service and non-service income.
  • Generally, the location of...
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Which W-8 Form do foreign entities need to submit to Harvard in order to be set-up for payment as a vendor?

There are 3 forms Harvard is able to accept from a foreign entity to be set-up to receive payments as a supplier (W-8 BEN-E, W-8 EXP, or W-8 ECI). Information on the various forms can be found on the Foreign Entities and W-8 Forms page. We are unable to advise on which form should be used, as this is a individual business decision a supplier must make based on their legal structure, and in consultation with a professional tax advisor if necessary.

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Why didn't I receive a 1042-S tax reporting document for tax treaty benefits claimed last year, even though my fellowship/stipend/scholarship was not taxed?

Non-service fellowship income, in the absence of tax treaty benefits, is also exempt from tax withholding when paid to a resident alien. First, confirm your residency status, and only if you were a nonresident alien, last year, should you look into updating your mailing address and requesting a reprint of the document.

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What if I have to pay someone before they arrive in the U.S?.

You can set up an international payee ahead of time only if the individual is receiving a travel grant payment, which may be necessary to arrange their travel to Harvard. This process can be initiated through B2P by selecting the Advance Travel Grant "ADVTR" visa option, which will result in the maximum tax withholding of 30% until the individual completes their Sprintax Calculus profile. The Calculus process can be started shortly before their arrival to the U.S., but the required I-94...

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Important 1042-S Tax Document Updates


Please note: In January 2024, Harvard transitioned to Sprintax Calculus as our tax compliance system for international payees (non-U.S. individuals and entities). Visit our Sprintax Calculus page for more information and resources.

2023 1042-S Tax Documents are available ONLY through Sprintax Calculus:

For Electronic Distribution of 1042-S- If you have previously given consent for electronic distribution of your 1042-S...

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