1.5 Conducting Business Outside the State of Illinois
Policy Statement
Units conducting business outside the State of Illinois must abide by the relevant laws, which are state or country specific.
Reason for the Policy
Units may need to conduct business outside the State of Illinois.
Applicability of the Policy
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.
Procedure
Before moving forward with any proposal to conduct business outside the State of Illinois, consult the units below to ensure that the University of Illinois System complies with the applicable laws.
- Office of University Counsel determines the applicable legal requirements. They may find it necessary to obtain the assistance of local legal counsel to interpret these laws, at the unit's expense
University Counsel contacts:
Chicago 312-996-7762
Springfield 217-206-7796
Urbana-Champaign 217-333-0560
- Tax Compliance and Analysis ensures compliance with tax and other related business laws. They assist with registration requirements for employment tax, sales tax, and other applicable tax obligations. They also obtain sales and use tax exemptions in other states and coordinate foreign tax issues.
Tax Compliance and Analysis contact:
217-244-8359
Related policy: 18.16 Implications of Conducting Business Outside the State of Illinois
- Contract Offices develop contracts for units wanting to provide goods or services to other parties. Do not provide goods or perform services until the required contracts have been fully executed.
Related policy: 19 Contracts
- Purchasing Divisions secure 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
System Purchasing & Support Services (for system-level offices) 217-333-9289
Related policy: 19 Contracts
- System or university human resources (HR) offices provide guidance before beginning any search, recruitment effort, or hiring. 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 the 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
- University Payroll and Benefits (UPB) ensures 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
- Cash Management (CM) establishes all banking relationships and should be consulted before 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
Related policies: 14.2 Open or Close a University Bank Account and 14.4 Manage Foreign Bank Accounts
- University Risk Management assesses risk management issues and determines whether
insurance coverage is required. Inform Risk Management if leased space is needed. Inform Risk Management if any system vehicles will be used for system business, as 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.
Risk Management contact:
217-333-3113
- Real Estate Services (RES) processes transactions including leases, licenses, easements, acquisitions, and dispositions on behalf of the Board of Trustees and should be consulted at least six months in advance of needing off campus leased space. Space needs assessments are performed by each university 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
- Contact the appropriate Export Control Compliance university office for review and approval if university property and software will be used outside the United States. Approval needs to be obtained before allowing employees to travel with university equipment.
Chicago
Office of the Vice Chancellor for Research, Office of Research Integrity, Export Controls 312-413-8191, uicexport@uic.edu
Export Controls & International Travel five-minute video
Springfield
Office of the Associate Vice Chancellor for Research and Innovation, Office of Research and Sponsored Programs, 217-206-7409, ora@uis.edu
Urbana-Champaign
Office of the Vice Chancellor for Research & Innovation, Sponsored Programs Administration, Export Controls 217-300-5943, exportcontrols@illinois.edu
International Travel & Export Controls five-minute video
For additional information, refer to 18.16 Implications of Conducting Business Outside the State of Illinois.
Last Updated: July 13, 2021 | Approved: Vice President, Chief Financial Officer and Comptroller | Effective: July 2021