Division of Financial Services
Tax
When engaging an individual for services in a foreign country, the concern of the university as well as the individual should be staying in compliance with the foreign country’s tax laws in addition to the tax laws of the United States. Employment and withholding laws vary by country, so if you have a specific question please submit it to the Navigate team.
In general, if an individual is engaged to perform services in a foreign country they may be subject to wage and tax reporting requirements of that country. Individuals should always be advised of this possibility and their potential responsibility. If the individual works within the country for a certain period of time and would be considered an employee, each defined with the laws of their own country, that individual would be subject to tax withholdings similar to those which occur in here in the United States that are reported on an employee W-2. In circumstances where withholding foreign wages is required, Cornell University is limited in the support it may provide, if it is able to provide any support at all. Similar concerns appear with independent contractors, particularly with U.S. individuals who work as an independent contractor in foreign countries (see Double Taxation for more information).
If the university and/or individual do not stay in compliance, the university and/or individual may have to pay back taxes as well as penalties and interests. To keep the individual and the university safe, and to maintain our global reputation, please submit any and all questions related to foreign service engagement using the Navigate website.
