709.1 - Procedure for Completing Tax Withholding Forms as a Non-Resident Alien Performing Services in the United States

Title

The University of North Carolina at Chapel Hill Finance Procedure 709.1 - Procedure for Completing Tax Withholding Forms as a Non-Resident Alien Performing Services in the United States

Procedure

When a non-resident alien is compensated for services performed in the United States other than wages, then they are classified as an Independent Contractor. Independent Contractors are required to complete predetermination forms and may be subject to background check requirements. Non-resident alien independent contractors also require additional forms to document their visa status, passport history, and withholding tax rates. It is extremely important to have all forms completed and approved before any services are performed because the visa classification may preclude the University's ability to pay the independent contractor. It is also important to be aware that the forms will require additional processing time for both the department and the central office.

Forms and Instructions

Follow the Independent Contractor Determination process found in University of North Carolina at Chapel Hill Finance Procedure 708.1 - Independent Contractor Predetermination Process, and gather the documents required. Additional forms and documents for non-resident aliens performing services in the United States include:

  • Finance Form 709.1.1f, Foreign Vendor Withholding Assessment - describes specific visa and passport copies, immigration history documents in required documentation section.
  • IRS Form W-8BEN
  • Copy of Passport pages: Biographical information with picture, visa page with issue date. Submit copy of U.S. entry stamp as soon as possible after arrival.
  • From the Department of Homeland Security Site, retrieve your information by clicking on the blue tab at the top of the page ("Get Most Recent I-94" tab) and follow the online directions. Send copies of both the I-94 information as well as the Travel History information in with this group of additional documents needed.
  • IRS form 8233 (if tax treaty is claimed, requires U.S. TIN)

All documents should be submitted to IC_review@unc.edu.

After forms are received, if the vendor has submitted a tax treaty claim, the IC reviewer will work with other central office departments to determine the appropriate tax rate for federal withholding. The federal tax rate and the NC Department of Revenue withholding tax rate will be deducted from the amount submitted on the voucher.

Exceptions

None.

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures

Contact Information

Policy Contacts
Subject Contact Numbers Email
Independent Contractor Predetermination Process Accounts Payable and Vendor Services T. 919-843-5098
F. 919-962-2356
accountspayable@unc.edu
NC Non-Resident Withholding Accounts Payable and Vendor Services T. 919-843-5098
F. 919-962-2356
accountspayable@unc.edu
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Details

Article ID: 131545
Created
Thu 4/8/21 9:11 PM
Modified
Thu 5/5/22 3:55 PM
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.
04/24/2018 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director, Accounts Payable and Vendor Services
Last Review
Date on which the most recent document review was completed.
04/24/2018 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
04/24/2018 12:00 AM
Next Review
Date on which the next document review is due.
04/24/2019 12:00 AM
Origination
Date on which the original version of this document was first made official.
07/01/2004 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget