Title
University of North Carolina at Chapel Hill Finance Policy 1117: Policy on Foreign National Employees
Introduction
Purpose
This policy provides information for foreign nationals who are being paid by Payroll Services, whether they are visiting Teachers/Researchers (visiting scholars) or Students (graduate student research and teaching assistants as well as other student employees).
Scope
Foreign nationals who are being paid by Payroll Services for services performed, whether they are visiting Teachers/Researchers (visiting scholars) or Students (graduate student research and teaching assistants as well as other student employees).
Policy
Policy Statement
All individuals who are receiving compensation for dependent services (also referred to as payroll, compensation, or wages) are required to show proof of identity and permission to work during the I-9 process. Additionally, every foreign national intending to work for the University and receive payroll will need to have their tax status determined by Payroll Services to ensure accuracy of payments and to support the individual's and University's tax compliance.
For tax purposes, the University classifies a foreign national's tax status as either "resident alien" or "nonresident alien." As a general rule, resident aliens are taxed in the same manner as U.S. citizens, while nonresident aliens are subject to special taxation procedures regulated by the Internal Revenue Code. These special tax codes not only affect the manner in which nonresident aliens are taxed but also imposes different rules on how the University is required to withhold tax and file reports with respect to payments made to nonresident aliens.
In order to determine tax status, each foreign individual being paid on payroll will need to complete their profile in Sprintax Calculus. To complete the profile, all required fields must be completed, and relevant documentation is required to be uploaded, which includes:
- Current Visa page
- Passport page
- Most recent I-94
- Associated document for visa type (such as I-20 for F-1 visa, DS-2019 for J-1 visa, etc.)
- EAD (Employment Authorization Document/card) if applicable
- SSN (Social Security Number) card (if one has been issued)
The exceptions where one does not need to provide all the above documents in Sprintax are listed below with alternative document upload requirements:
- For those who have a Green Card (also known as Permanent Resident Card), copies of the Green Card front and back is the only documentation required to be uploaded into Sprintax.
- For those who are classified under DACA (Deferred Action for Childhood Arrivals), copies of the front and back of the EAD card should be uploaded.
Foreign nationals may be exempt from U.S. income tax on some or all wages earned if such payments qualify under a tax treaty between the U.S. and their country of residence. Sprintax Calculus will include in their tax analysis for each foreign national a review to see if they qualify for tax treaty benefits. If they qualify for tax treaty benefits, Sprintax will advise the foreign national and provide the associated documents to the foreign national for review and signature if they choose to claim those tax benefits.
Exceptions
None.
Additional Information
Special Situations
None.
Frequently Asked Questions
None.
Related Requirements
External Regulations and Consequences
None.
University Policies, Standards, and Procedures
Contact Information
Policy Contact
Unit: Payroll Services
Telephone: 919-962-0047
Email: NRApayrolltax@unc.edu
History
Revised:
- August 10, 2026 - Updated for Sprintax onboarding process
- June 6,2023 - Added DACAlanguage
- April 5, 2023 - Updated language
- October 13, 2017 - Updated main Payroll phone number.
- September 2, 2009
- May 29, 2007
- January 3, 2005