International Payments

Paying individuals to provide services outside of the United States may require Virginia Tech to comply with foreign laws. This requirement may apply to current employees, newly hired individuals, and independent contractors. As a result, Virginia Tech generally cannot directly employ individuals abroad in most circumstances.

Several options are available to departments based on business needs and host country’s requirements, which are detailed below. The following factors should be considered to determine the correct option for payment:

• Duration of assignment; must be greater than 90 days to be eligible for Employer of Record option
• Type, location, and compensation for services to be performed
• Work authorization sponsorship fees that may be necessary when transitioning to Virginia Tech employment
• Service costs:
  • Employer of Record (EoR) onboarding fee and monthly service fee, which varies by country and salary
  • Fringe expense to cover employer-sponsored benefits and employer-owed taxes
  • Other costs related to compliance with foreign laws and regulations 

Host Country Partnership

Virginia Tech collaborates with partners in the host country where services will be performed, such as a peer university or non-governmental organization, to offer employment. Virginia Tech departments are responsible for sourcing and vetting the partner organization and negotiating the service agreement, typically using university approved agreements and reviews by respective counsels. Sponsored Programs, Procurement, and Legal Counsel can advise on the service agreement. Current university employees planning to perform services outside of the United States must assess the visa and permit requirements of the foreign country. If the period of performance is greater than 30 days, Human Resources can advise on the service agreement.

Employer of Record

Engage with an employer of record (EoR), which is a third-party professional employment organization that is registered to do business in a foreign country and can legally employ personnel in that country on behalf of Virginia Tech. The university currently contracts with Velocity Global for EoR services. Velocity Global is headquartered in the United States with employees across six continents and offers employment options in 185 countries. If the employee permanently transfers their workstation to the United States, the EoR arrangement will need to be reevaluated. 

Virginia Tech Employment

This option is narrowly available in limited circumstances for Virginia Tech colleges and departments. Determinations will vary based on host country regulations, the service requirements, and duration of service. The evaluation applies to current university employees where services would be performed outside of the United States for periods exceeding 30 consecutive days.

The college or department Human Resources representative will need to consult with Payroll and the Division of Human Resources to evaluate the host country regulations, the needs of the program, and the costs to determine the best option. In some cases, outside tax or legal advice will be required and may take longer. While some evaluations are available more quickly, it is recommended to allow 30 – 45 days for evaluation. Individuals may not begin performing services until an appropriate option is identified and in place. 

Independent Contractor Services

This option is narrowly available in limited circumstances for Virginia Tech colleges and departments. Every country has different rules about the distinction between independent contractor and employee services. In most countries, a worker is assumed to be an employee unless they qualify as an independent contractor by meeting defined criteria. Independent contractors may need work authorization in the country where they perform services.

Additionally, some countries require independent contractors to register as businesses and/or collect a service tax or value-added tax (VAT) from their clients. Meeting the registration and tax requirements are the responsibility of the independent contractor, not Virginia Tech. A few countries apply obligations such as tax withholding even to those institutions engaging independent contractors. Because of these factors, the use of independent contractors to provide services abroad must be reviewed extensively to be considered as a viable option.

University stakeholders and resources for guidance or questions

• Department Leadership/HR/Supervisor
• Controller’s Office
• Global Strategic Services
• Human Resources
• Procurement
• Sponsored Programs/Export and Secure Research Compliance
• University Legal Counsel