UMass has tax obligations when making certain payments to Foreign Nationals. The University recently transitioned to Sprintax Calculus to assist with this. 

Sprintax Calculus (Sprintax) is a cloud-based solution used to ensure U.S. tax compliance when making payments to Foreign Nationals. This includes students, employees, independent contractors, researchers, and teachers.

This can be confusing for both students and administrators. The Internal Revenue Service (IRS) distinctively treats U.S. residents and nonresident aliens differently, introducing complexities that require precision and expertise.

Implementation of Sprintax went live system-wide on 9/20 to enhance tax reporting for 2023. This transition marks a shift from the previously utilized GLACIER tax compliance system.

The determination of U.S. tax withholding depends on several factors:

  • U.S. Tax Residency Status: The tax residency status of individuals is a crucial aspect in determining how the individual is treated.
  • Nature of Income: Whether the income is deemed U.S. or foreign-sourced holds significant weight in the tax calculation process.
  • Type of Income: Taking into account the various types of income will ensure accurate and compliant tax calculations.
  • Eligibility for Tax Treaty Benefits: Individuals may be eligible for tax treaty benefits, and these benefits can be assessed and applied where applicable.

Key features that contribute substantial value to both central and campus operations include:

  • Tax Residency Determination: Sprintax aids in determining the tax residency status of foreign nationals.
  • Income Tax Treaty Eligibility: The platform evaluates eligibility for income tax treaty benefits, streamlining the compliance process.
  • Nonresident Tax Withholding: Sprintax calculates nonresident tax withholding, ensuring compliance with IRS regulations.
  • Tax Form Generation and Filing Assistance: The platform assists in generating and filing tax forms and returns, simplifying a typically intricate process.
  • Integration Capabilities: Sprintax can integrate tax status determination with tax return preparation software, creating an efficient and streamlined workflow.

Moving forward, the next steps involve leveraging Sprintax technology to enhance effectiveness through process improvement and integration. This forward-looking approach ensures that the University community benefits from a robust and compliant tax reporting system. 

Should you have any questions or require further guidance on making payments to foreign nationals, please don't hesitate to reach out to the Tax office.