Sprintax for Non-Resident Payments
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What is Sprintax?
Sprintax is a US income tax software for nonresident aliens. Sprintax is a secure electronic collection of tax information for foreign individuals that Dartmouth uses to confirm correct tax treatment for payments. Sprintax allows the payee to register and fill out their profile for the most accurate tax withholding. This will replace the manual W8-BEN currently used to collect nonresident alien tax information.
How does the new Sprintax process work?
When a payment request for a nonresident is received by Accounts Payable (AP), AP staff will go into Sprintax to see if the payee has registered and completed their profile. If the payee has registered the payment information is entered and Sprintax will calculate the appropriate withholding rate and amount. Once the tax information has been calculated the eForm will be updated with any withholding and submitted for payment (either through Oracle or as a wire).
How does a nonresident payee get invited to register in Sprintax and what happens if they do not register?
- Accounts Payable will invite the individual to register in Sprintax and follow-up with an email.
- If the non-resident individual has not registered within seven days, Accounts Payable will send a follow-up email to the individual and copy the Submitter of the eForm.
- If the non-resident individual has not registered within 14 days, Accounts Payable will return the eForm to the Submitter requesting the submitter follow-up with the individual.
- Once the Submitter has heard back from the non-resident individual that they have completed the registration process, the submitter can resubmit the eForm, using the “Return to Finance Center” button.
Note: Payment will not be issued until the Sprintax registration is complete.
What if the registration is completed AFTER payment is made?
If Dartmouth withholds at 30% and the payee updates their profile after payment which changes their tax withholding, AP will put through an eForm request to pay back the excess taxes withheld.
Other Sprintax Requirements
Dartmouth is required to collect specific categories of qualified and unqualified scholarships/fellowships so that the appropriate tax withholding can be calculated. The department must state which type of scholarship/fellowship they are paying within the business purpose of the eForm:
- Cultural Development
- Educational Materials
- Health Insurance
- Housing Allowance
- Other
- Professional Development
- Stipend
- Taxes
- Travel
- Tuition
Who do I contact if there are questions?
Questions should be directed to Accounts Payable at Accounts.Payable@dartmouth.edu.
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