Working Outside of Illinois

The University of Illinois System primary location of operations is within the State of Illinois.  This policy provides guidance and establishes basic requirements and other considerations for designating an employee’s remote work location to be outside of the State of Illinois when such an arrangement is in the best interest of the University. 

Policy Information

Policy Owner: Associate Vice President and Chief Human Resources Officer
Approved by: Executive Vice President and Vice President for Academic Affairs
Date Approved: 01/14/2022
Effective Date: 01/18/2022
Date Amended (most recent): 11/02/2023
Targeted Review Date: 01/14/2025
Contact: SystemHRServices@uillinois.edu

Purpose

The University of Illinois System primary location of operations is within the State of Illinois.  This policy provides guidance and establishes basic requirements and other considerations for designating an employee’s remote work location to be outside of the State of Illinois when such an arrangement is in the best interest of the University. 

Scope

This policy applies to all paid employees of the University of Illinois System (“System”), except faculty. The System is comprised of the universities at Urbana-Champaign, Chicago, and Springfield and their regional campuses (the “universities”, or individually the “university”); the University of Illinois Hospital & Health Sciences System (the “hospital”), and the System Offices. Also excluded from this policy are unpaid appointments, fellows, independent contractors, and individuals working on behalf of the System but sourced from external employee leasing and temporary employment agencies.

This policy applies to permanent or temporary work locations outside of Illinois for 60 or more consecutive days where the employee typically would be considered a resident for tax purposes of another state or country. This policy also applies if the primary work location is not in Illinois. Primary work location is determined by where the majority of work is performed. 

Background

With improved communications and information technology, the workplace has evolved to include working remotely when it is in the System’s interest to allow such a work arrangement. Working remotely, and/or outside of the State of Illinois, may not be appropriate for certain employees and specific positions.

While the hiring/System units may review requests from employees to work remotely from locations within the State of Illinois, the approval to work remotely outside the State of Illinois is more complex because of factors such as employee benefits, visa requirements, payroll and tax laws, and other local laws.  Therefore, all such arrangements must be expressly reviewed and approved in advance as determined by specific procedures that may be unique for each university, the hospital and/or System Office.

Such an arrangement, if approved, is not an entitlement or System-wide benefit, nor does it change the terms and conditions of employment with the System. An employee’s managing supervisor, unit head, dean, vice chancellor/chancellor, or a delegated representative of these officials, may revoke an employee’s approval to work outside of Illinois at any time based upon the needs of the hiring unit, college, hospital, university, or System Offices and consistent with applicable law.  Further these arrangements should be reviewed annually.  

Statement of Policy

Approval authority for employees to work remotely outside the state of Illinois is at the vice president/chancellor/vice chancellor, provost/vice provost, dean, other executive unit head level, or a delegated representative of these officials, and must be supported by a compelling circumstance.  It is the responsibility of the approving/hiring unit to ensure the verifications and applicable steps required by this policy are followed and documented.  This includes any other steps that may be required by the employee’s university, hospital, or System Office.

Procedures

Approval of any request to allow a university employee to work outside of the State of Illinois requires at a minimum the ability for the employee to adequately fulfill their job responsibilities and comply with all applicable System, university, and hospital policies, rules, practices, and procedures at the out-of-state location. Each university, the hospital, and the System Office will establish guidelines and specific work arrangements to implement this policy.

Responsibilities Related to Employees Working Outside of Illinois

Employing/Hiring Units

  • Consult with central human resources on eligibility whether at the university, hospital, or System level and regardless of classification.
  • If determined eligible, work with affected employees to complete the approval process established for their university/hospital/System Office.
  • If approval is granted, employees will need to provide documentation to University Payroll & Benefits (UPB) so the correct taxes are withheld. This documentation will be provided through the university/hospital/System Office electronic approval process. Employees not certain if they have submitted the correct documentation are encouraged to contact UPB at paying@uillinois.edu. This documentation is not required for employees being paid foreign sourced income.
  • Inform employees to remit a new state withholding allowance certificate, if applicable, and contact University Payroll & Benefits (UPB) with questions.
  • Track the work location of all employees working outside of Illinois.
    • In situations where an employee has more than one work location, the primary work location is where the employee works the majority of the time and typically determines the System’s state tax responsibilities. 
  • Ensure employees update the “Working Outside of Illinois” address section in My UI Info. This step does not need to be completed if the address was electronically submitted during the onboarding process.
  • Require employees to execute and comply with any applicable telecommuting/remote work agreements.
  • Require employees to comply with applicable data protection and privacy laws, regulations, and industry standards, as well as System policies and standards that require security safeguards around sensitive institutional data.
    • Request employees desiring to work remotely in the European Economic area or the United Kingdom complete the Employee Privacy Notice.
    • Contact System or University Human Resources to update the GUACCPR page in Banner.
  • Review and comply with Business and Financial Policy Section 12.3.7, Equipment Loans to Faculty, Staff, or Students.
  • Understand that the unit will be responsible for various expenses resulting from an employee working outside of Illinois. These expenses may be of a continuing nature, rather than a one-time expense, and could be significant for employees who will work in a foreign country. Examples of possible requirements and/or expenses for remote work arrangements outside Illinois, whether within the U.S. or abroad, include but are not limited to:
    • Business registration, employment tax withholding, filings, and remitting obligations, sales tax requirements, corporate income tax, additional health benefits, and worker’s compensation.
    • Employment contracts, additional holiday benefits, employer’s share of social security/insurance type benefits, and severance pay.
    • External professional advice such as local legal counsel, accountants, and payroll and tax consultants. This is particularly important when foreign tax withholding, remitting, and reporting is required.

Employees

  • An employee may submit a request to work outside the State of Illinois in accordance with this policy and as allowed by their university, hospital, or System Office. Failure to obtain permission to work remotely outside of the State of Illinois before doing so may be grounds for discipline up to and including termination of employment, subject to applicable disciplinary rules and procedures.
  • If the request to work remotely outside the State of Illinois is approved:
    • Electronically certify that you will be working outside Illinois. Your unit or human resource office will provide instructions on how to complete this certification. This process is not required for employees being paid foreign sourced income.
    • Submit the appropriate Tax Withholding Allowance Certificate if working within the United States but outside of Illinois. Contact University Payroll & Benefits with questions. This form is not required for employees being paid foreign sourced income.
    • Update the “Working Outside of Illinois Address” section in My UI Info. This step does not need to be completed if the address was electronically submitted during the onboarding process.
    • Consider consulting with a tax advisor regarding your personal tax situation and to make necessary adjustments to personal income tax withholdings and benefits elections. Be advised that such consultations are at your own personal expense and will not be paid by your university, hospital, or System Office.
    • Record all hours worked in the manner designated by your university, hospital, or System Office (applies to those employees who are not exempt from the overtime requirements of the Fair Labor Standards Act).
    • Select health and dental plans in your area that provide the desired level of coverage and provider network flexibility. Employees may need to wait until benefits open enrollment to make a change to their health and dental plans. For questions about qualifying events, contact University Payroll & Benefits (UPB).
    • Consult with Risk Management and your unit on workers’ compensation claims.
    • Work with your unit’s staff to comply with applicable laws, policies, and procedures, including signing any applicable telecommuting/remote work agreements.
    • Review any applicable employment law posters for the state in which you are working.
    • Hospital employees whose positions require an active Illinois professional license shall be required to maintain such license while providing patient care and/or services on behalf of the University of Illinois Hospital & Clinics.
    • Ensure you have and maintain a valid work permit (if required).
    • You may also be responsible for the cost of travel to and from a university worksite if required by your approving/hiring unit.  
    • If you are an international employee working under the conditions of a visa sponsored by the university, please contact the appropriate office listed below before taking any action as this may restrict your ability to work outside the State of Illinois.

University Payroll & Benefits

  • Comply with federal, state, local, and international laws and regulations related to the withholding of employment taxes on compensation for employees working or residing outside Illinois.

Treasury Operations

  • Tax Compliance & Analysis
    • Provide tax-related assistance to impacted units.
    • Ensure System compliance with relevant laws and rules.
    • For employee requests to work outside the United States, at the request of the employing unit, consult with local tax consultants or other resources, as appropriate, to determine tax related requirements in the work destination country.
  • Risk Management
    • Respond to questions from employees or employing units.
  • Cash Management
    • Verify wire transfers are handled correctly (if applicable).
    • Serve as a resource for international business processes.

System Human Resource Services

  • Develop, oversee, administer, and manage this policy and any policies and/or procedures developed in accordance with this policy.
  • Communicate and provide necessary training regarding this policy and any policies, guidelines, and/or procedures developed to comply with this policy to all individuals responsible for compliance and implementation.
  • Report employees working outside of Illinois to the following units:
    • University or hospital Human Resources
    • Treasury Operations
      • Tax Compliance & Analysis
      • Workers’ Compensation
      • Risk Management
    • Purchasing
    • Real Estate Planning Services
  • Stay informed of new federal and state laws and System policies that may affect this policy.
  • Work with University Counsel, Treasury Operations, University Payroll & Benefits, and university/hospital Human Resource offices to understand the implications of new laws or policies.
  • Coordinate collection and distribution of data/reports, when requested.

University and Hospital Human Resources (includes UIC HR, UIS HR, Illinois HR, and Hospital HR)

  • Serve as a resource to employees as they move through the onboarding process.
  • Serve as a resource to employees who transition to a position that falls under the scope of this policy.
  • Coordinate with the employing unit to update the GUACCPR page in Banner for employees working in the European Economic Area or the United Kingdom.
  • Make available to employees any forms or documents related to the approval process.
  • Make available to employees any definitions, policies, guidelines, or forms related to remote working or telecommuting.

Medical Staff Services (UI Health)

  • Provide guidance to medical providers requiring state licensure.
  • Provide guidance to Practitioners privileged to provide patient care and services on behalf of the University of Illinois Hospital and Clinics.
  • Ensure that Practitioners located outside of Illinois and providing telehealth services to patients located at the University of Illinois Hospital and Clinics maintain an active Illinois license in their discipline as required by the Medical Staff Bylaws.

University Counsel

  • Stay informed of new federal and state laws and System policies that may affect this policy.
  • Coordinate with System Human Resources on new developments in the areas of employment law including, but not limited to, the following areas:
    • Minimum wage
    • Overtime regulations
    • Classification as exempt
    • Meal and rest periods
    • Family Medical Leave Act provisions
    • Required benefits
    • Employment contract provisions
  • For employee requests to work outside the United States, consult with local counsel or other resources, as appropriate, to determine employment related requirements in the work destination country.

Administrative Information Technology Service (AITS)

  • Provide a daily (weekday) report to University Payroll & Benefits (UPB) that provides a list of employees with a Working Outside of Illinois address that doesn’t have a Headquarter (HQ) address type.  This report will also include any updates to the Working Outside of Illinois end date, and other agreed upon information.

Accounting and Financial Reporting

  • Provide training and resources for equipment loans and other transfers.

Additional Responsibilities for Working Outside the United States

Employing Units

  • Before approving requests for employees to work outside the United States, consult with the Office of University Counsel and Office of Treasury Operations to determine the applicable legal and tax requirements. University Counsel and/or Treasury Operations may find it necessary to obtain the assistance of local legal counsel or consultants to identify and interpret foreign laws and other requirements at the unit's expense.
  • Determine if employees are not citizens, noncitizen nationals, or legal permanent residents – e.g., employees in H-1B, TN, E-3, or J-1 status, and contact the university international services office to discuss possible implications for their visa status.
  • Consult with the applicable university Export Control Compliance Office prior to approving an employee working outside the United States. In addition to considering any employee implications, the Export Control Compliance Office will review and approve the use of any university property and software intended for use by the employee outside the United States. In some instances, an export license may be required prior to approving such use. Additional information is available on the following websites:
  • Ensure applicable employment requirements are reviewed on an ongoing basis but no less than annually, either through an external employment agency or through University Counsel. External reviews may require payment of additional expenses, which will be the unit’s responsibility.
  • As previously stated, understand that the unit will be responsible for a variety of expenses resulting from an employee working in a foreign country and these expenses could be significant and may be of a continuing nature, rather than a one-time expense.

Employees

Forms, Tools and Additional Resources


Keywords:
Tax Withholding Allowance, compliance, risk management 
Doc ID:
142831
Owned by:
Laura C. in University of Illinois Human Resources
Created:
2024-10-04
Updated:
2024-10-04
Sites:
University of Illinois Human Resources