Visiting Personnel Services & Expenses
Personal services include, but are not limited to, payments made to nonresident consultants, public speakers, entertainers, individual athletes, jockeys, performers, etc. Questions regarding qualification of someone as an independent contractor versus an employee should be discussed with the Payroll office at 402.554.2325.
The Visiting Personnel and Miscellaneous Expense Voucher is available to providers of personal services to facilitate the invoice payment process. It is recommended that all individuals completing this form also complete the Provider of Personal Services form. The forms are available in the SAPPHIRE Resources Business Forms section.
State law requires that payments to non-resident (out-of-state) individuals rendering personal services in the State of Nebraska be subject to Nebraska income tax withholding even though the individuals are not University employees.
Payments for personal services made to a partnership or corporation which is controlled by an individual or individuals performing the service will also require withholding, since the payment is deemed to be made directly to the individual(s) involved. Control is defined as having greater than 80% ownership of the partnership or corporation by the individuals performing the service within the State.
Nebraska Income Tax Withholding
Withholding is required whenever a payment or payments to the same individual, partnership or corporation is in excess of $600. If total payments are less than $28,000, withholding is 4.00% of the payment. If total payments are $28,000 or more, withholding is 6.00% of the payment. The Provider of Personal Services form is used by Accounting Services to determine the withholding requirements.
Questions regarding payments to providers of personal services or any of the above issues can be addressed to Teresa Carlson at 402.554.4937.