Employment tax and international hiring matters

Yale may engage a consultant who resides outside the U.S. to perform consulting work on a Yale project only if that person is properly classified as a “consultant” (as opposed to an employee) under Yale Policy 3210, Professional Services and Consulting. The risks of misclassifying a person as a consultant are significant and, if you have any doubt about such classification, please contact the Yale Tax Department at 203-432-5530.

For a properly-classified consultant, the standard-form Yale consulting agreement (Yale University Professional Services and Consulting Agreement, Form 3210 FR.01) should be used as the starting point for documenting the relationship. You should contact Yale Procurement for assistance.

Yale will not be able to hire people outside the U.S. as employees without observing the local employment regulations and the other laws of the country where the individual will be working. This will typically require that Yale have a branch or registered office within the country and a payroll function that is in compliance with all local taxation and social benefits laws. It may be possible to use the services of a third-party personnel agency within the local country to engage personnel or to second (i.e. “loan”) an employee to a local academic institution involved with the relevant Yale project.

Please refer to the International Tax website for information related to required tax forms as well as the U.S. reporting and withholding requirements.

If you have questions, please consult your business manager who can coordinate with Human Resources and the Office of General Counsel, as necessary.

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