1107.2 - Procedure for Payroll Reporting of Employees Who Work Outside of North Carolina



To stay compliant with tax regulations in all jurisdictions (local, state, and national) where the University has employees working, it is necessary that any employee who works outside of North Carolina be reported to Payroll Services.

Scope of Applicability

This procedure applies to all University of North Carolina at Chapel Hill employees who work outside of North Carolina and all department representatives who employ or are aware of employees working outside of North Carolina.


Whenever an employee works in a state other than North Carolina or outside of the United States, different tax laws will likely apply to that employee and to the University as an employer. To be compliant, Payroll Services must review and apply tax withholding and reporting requirements for all jurisdictions where employees perform work. These requirements can include local and state withholding taxes, unemployment taxes and wage reporting, and other miscellaneous taxes imposed.

Department Representatives: Employees working outside of North Carolina should be reported to Payroll Services prior to receiving compensation for services performed outside North Carolina via the following:

  1. Complete Finance Form 1107.2.1f (“Notice of Employee Working Outside of North Carolina”) to report any employee who works outside of North Carolina (including those who work outside of the United States).
  2. Sign and date the form at the bottom to certify details included in the form.
  3. Collect the required documents needed (as listed on page 2 of the form) from the employee.
  4. Mail the form and required documents to Payroll Services.
  5. Upon receipt of form, Payroll Services will review form for accuracy and residency considerations. If further forms or information is needed, Payroll Services will reach out to the department representative and/or employee.


Any employee who works outside of North Carolina also shares responsibility to self-report their work location to Payroll Services. These employees should contact the employing department’s Human Resources representative to ensure the above procedure is completed to report the out of state or out of country work location to Payroll Services.


This does not apply to employees of the University of North Carolina at Chapel Hill who work out of state for a different employer.

Related Requirements

University Policies, Standards, And Procedures

Contact Information

Primary Contact

Title: Multistate Tax Coordinator
Unit: Payroll Services
Email: MultistateTax@unc.edu
Phone: 919-962-0047

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Article ID: 131379
Thu 4/8/21 9:07 PM
Wed 5/24/23 10:34 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
11/08/2018 12:00 AM
Issuing Officer
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Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director of Payroll Services
Last Review
Date on which the most recent document review was completed.
04/12/2023 12:00 AM
Last Revised
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11/08/2018 12:00 AM
Next Review
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04/15/2024 12:00 AM
Date on which the original version of this document was first made official.
11/08/2018 12:00 AM
Responsible Unit
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Finance and Budget