1.5.1 How to Conduct Business Outside the State of Illinois
Policy Statement
Occasionally, it may be necessary to conduct business outside the state of Illinois, including outside of the country. Conducting business outside the state of Illinois may include, but is not limited to, opening new locations, allowing employees to work remotely (even if on a temporary basis), off-site teaching and research activities, and internet sales. The System and its three universities must abide by the relevant laws, which are state and country specific.
Procedure
Before moving forward with any proposal to conduct business outside Illinois consult the System Offices units below to help ensure that the System complies with applicable laws.
- Consult with the Office of University Counsel before conducting business outside the state of Illinois to determine the applicable legal requirements. University Counsel may find it necessary to obtain the assistance of local legal counsel to interpret these foreign laws, at the unit's expense.
University Counsel contacts:
Chicago 312-996-7762
Springfield 217-206-7796
Urbana-Champaign 217-333-0560
- Consult with the Office of Treasury Operations, Tax Compliance and Analysis (Tax) before conducting business outside the state of Illinois to ensure compliance with tax and other related business laws. Tax assists with registration requirements for employment tax, sales tax, and other applicable tax obligations. It also obtains sales and use tax exemptions in other states and coordinates foreign tax issues.
Tax Compliance and Analysis contact:
217-244-8359
Related policy: 18.16 Implications of Conducting Business Outside the State of Illinois
- Contact the University Purchasing before securing any services and goods, including services of an independent contractor or housing and office space. Do not begin any work until the required contracts have been fully executed.
University Purchasing contacts:
Chicago 312-996-7084
Springfield 217-206-6651
Urbana-Champaign 217-333-3505
Purchasing Who To Ask
Related policy: 1.3.2 Initiation, Review, and Approval of University Contracts and Leases
- Consult with your System or university human resources (HR) office before beginning any search, recruitment effort, or hiring, to ensure all policies and processes are followed. HR will also determine impacts on bargaining units.
Contact HR before using the services of a System employee. Do not begin any work until HR ensures that appropriate employment documents are completed. Refer to 17.2 Classification of Independent Contractors Versus Employees to determine proper worker classification.
Human Resources contacts:
uihr@uillinois.edu
System Human Resource Services (SHRS)
Main Line 217-333-2590
Chicago 312-996-5130
Urbana-Champaign 217-333-2600
University Equal Opportunity 217-333-7925
- Contact University Payroll and Benefits (UPB) to ensure that relevant employment taxes are properly withheld.
Withholding and documentation requirements in each state and country are unique. Employees working in another state must complete a Form W-4 or withholding statement for that state and a certificate of non-residence in Illinois or a Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois. UPB works with employees to collect the required documentation. UPB makes tax deposits and reports withholdings and earnings based on state requirements.
University Payroll and Benefits contacts:
payinq@uillinois.edu
Chicago 312-996-7200 (Phone Number requires dialing all 10-digits)
Springfield 217-206-7144
Urbana-Champaign 217-265-6363
- Consult with the Office of Treasury Operations, Cash Management (CM) before conducting banking outside of the United States. CM determines the best strategy to navigate the complexities of foreign banking laws. All banking relationships are opened through CM. Also, CM obtains the signature of the CFO and Board approval, if necessary.
Cash Management contacts:
cashmgmt@uillinois.edu
217-333-2400
14.4 Manage Foreign Bank Accounts
14.2 Open or Close Bank Accounts
- Consult with the University Risk Management Office before beginning business activities outside the state of Illinois to assess risk management issues and determine whether insurance coverage is required.
Inform Risk Management if leased space is needed. Also, inform Risk Management if any System vehicles will be used for System business because special insurance may be required. There may be additional issues to consider when employees live and work outside the United States, such as workers' compensation and medical evacuation and repatriation insurance. Several states and foreign countries do not accept the System's workers' compensation self-insurance plan, requiring the purchase of commercial workers' compensation insurance. Units must bear this additional cost.
Risk Management contact:
217-333-3113
- Consult with Real Estate Planning Services (RES) at least six months in advance of needing off campus leased space. Space needs assessments are performed by each campus in conjunction with Facilities and Services and/or the Office of the Provost.
Real estate transactions including leases, licenses, easements, acquisitions, and dispositions must be processed by RES on behalf of the Board of Trustees.
Real Estate Services contacts:
Chicago 312-996-2949
Springfield / Urbana-Champaign / System Offices 217-244-4483
For additional information, refer to 18.16 Implications of Conducting Business Outside the State of Illinois.
Last Updated: February 27, 2018 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2016