Sprintax for Non-Resident Payments
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.
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?
If the payee has not registered when we receive a payment request, AP will reach out to the payee informing them that there is a payment for them and ask them to register within a week. They will have 7 days to complete their profile before we are required to withhold the maximum rate of 30%.
For PaymentWorks vendors, AP will send an invitation to register and complete their profile when they submit their PaymentWorks registration. When an eForm is received AP will confirm if the vendor has completed the Sprintax registration. If they have not completed their profile, we will be required to withhold the maximum rate of 30% from their payment.
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.
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
- Professional Development
Questions should be directed to Accounts Payable at Accounts.Payable@dartmouth.edu.