Services Performed Outside the United States
Service Providers
Examples of Service Providers are data analysts, programmers, artists, editors, translators, scientists, and professional coaches. Service Providers may include professional service such as management consultants, engineers, and architects, but these are rare. In these instances, a services agreement is required. The Services Agreement checklists are available to assist.
Independent Contractor - Service Provider
Independent contractors are self-employed individuals who own or operate as their own business.
To begin engaging an independent contractor from outside the US, follow these steps:
- Complete a 20 Factor Test, regardless of the dollar amount of the services.
- Engage and send the 20 Factor Test results to Ian McLaughlin, the Pitt Global Operations Support Manager.
Non-Independent Contractor –Service Provider
To begin engaging a firm or company that is located outside of the US:
- Services cost $10,000 or less:
- Engage Risk Management for insurance assistance.
- Complete the Short Form International Services Agreement.
- Services cost more than $10,000:
- Engage Risk Management for insurance assistance.
- Submit request via Contracts+ to your assigned Procurement Specialist.
Onsite Abroad:
When abroad, University representatives may encounter various levels of contracting sophistication depending on the supplier, the type of services, and the location where the services are being provided.
During your travels, you may encounter immediate and/or short-term service needs that are of low economic value and on-site, where a services agreement may not be appropriate. The chart below provides information related to various contracting and payment options, including the use of an invoice or receipt provided by the supplier. If the supplier does not have a form of invoice or receipt, blank forms are available.
The following information covers approved methods of contracting and paying for services provided from outside the US.
| Amount | Day Laborers1 | Translating & Interpreting Services | Laboratory Services |
|---|---|---|---|
| $10K or less | Invoice/Receipt | Invoice/Receipt | Invoice/Receipt |
| More than $10K | See Service Providers above | See Service Providers above | See Service Providers above |
1Day laborers include those individuals hired on a short-term basis to work for an hourly or daily rate; typically to fulfill unskilled or semi-skilled, manual labor needs. Examples include drivers, porters, diggers/excavators, messengers.
CAUTION: If any services are expected to exceed ninety (90) days, please consult with Global Operations Support prior to contracting for such services.
In-Travel Goods Purchases:
| Amount | In-Travel Goods Purchase |
|---|---|
| $10k or less | Invoice/Receipt |
| More than $10k | Review payment options below |
US Independent Contractors Working Outside of the US
PRIOR to engaging a US national or US permanent resident for work outside of the US, contact the Global Operations Support Manager as it may need to be determined if the individual is allowed to work from that country.
Services Performed Inside the United States by Foreign Nationals
US tax and other laws and international treaties can complicate payments to foreign nationals.
Payments to foreign national independent contractors working in the US are infrequent since these service providers typically work for companies. A contract is usually executed with and payment is made to the company.
Review information on the Paying Foreign Nationals page to learn whether the University is permitted by law to pay this individual as well as guidance on US tax withholding and processing instructions. Consult this information before signing an agreement with a foreign national.
Payments:
University payment option information is available on the PPT website.
Paying Foreign National Visitors & Independent Contractors for Activities Performed Inside the U.S. information is available on the PPT website.
Payments to foreign national independent contractors for work performed outside of the US are generally not subject to US tax reporting and withholding. However, they may be subject to local labor and tax laws, particularly if payments are recurring and/or last more than 90 days. Contact Global Operations Support Manager to discuss and plan your global activities.
Assistance:
Global Operations Support webpage provides relevant information about research-related budget preparation and planning on Budget Preparation and Planning Considerations.
If you have questions about contracts for services performed outside of the US, please contact the Purchasing Services Procurement Specialist assigned to your Responsibility Center.