Title
The University of North Carolina at Chapel Hill Finance Procedure 709.1 - Procedure for Completing Tax Withholding Forms as a Nonresident Alien Performing Services in the United States
Procedure
When a nonresident 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. Additional forms may be required to to document 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 via the Independent Contractor workflow in ConnectCarolina.
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.
Definitions
- Nonresident Alien: is a federal term that describes the tax category of people who work in the United States. You're considered a nonresident alien for any period of your employment that you're neither a U.S. citizen nor a resident alien (hold a green card or other substantial presence test) during the taxable year. See the IRS definitions for more details.
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 |