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Taxes

A venue signs a $10,000 contract with a performer in 2019 for a performance scheduled for 2020. The venue is required to place $2,000 in an escrow account held by the performer’s agent at the time the contract is signed. How much withholding is required in each year?

No withholding is required in 2019 because the compensation for performing services in North Carolina was not paid during that...
Are 1099s issued for travel reimbursement to guest speakers?

Receipted travel is typically not reported as income, so no 1099 would be issued. Typically, a guest speaker invited by...
Are all international students, faculty and staff required to have a tax assessment?

All Foreign Nationals who are employed on campus or who will receive a fellowship, scholarship, and certain payments processed through...
Are meal delivery services or restaurant gift cards considered taxable income?

Yes. Meal delivery services and restaurant gift cards are considered taxable income and must be reported on IRS form W-2...
Are scholarship or fellowship payments made to a foreign national subject to tax withholding?

Yes. Withholding may be required on scholarship and fellowship payments made to foreign nationals unless the payment is a qualified...
Are there sales tax exemptions for out-of-state hotels?

NC State University’s sales and use tax exemption does not apply to occupancy taxes on hotel/motel lodging. When paying direct,...
Can a contractor provide a statement or evidence to show that the 4% withholding will be in excess of its tax liability?

No. Any excess withholding will be refunded upon the filing of an income tax return showing an overpayment of tax....
Can a contractor provide an affirmation or other statement that it will satisfy its income tax filing requirement and be exempt from withholding?

No. The only exceptions to withholding are those identified in the Exceptions to Withholding section of Directive PD-98-3. A contractor...
Can a department reimburse employees for taxes on business-related purchases paid by the employee with personal funds?

Yes, if charged to the appropriate project and is approved by the department or college. It is up to the...
Can a foreign national receive an honorarium payment?

The answer depends on the supplier’s visa type. Federal law states foreign nationals who are B and VWB (Visa Waiver...
Can a J-1 visa holder be paid as a consultant or independent contractor?

There is a contradiction in the law that allows a J-1 visa holder to be paid as an independent contractor....
Can a J-1 visa holder receive an honorarium payment?

J-1 student visa holders cannot receive an honoraria payment. J-1 visa scholars or short-term scholars, sponsored by another university or...
Can an F-1 visa holder receive an honorarium payment?

It would be highly unusual for an F-1 visa holder to be approved to receive an honorarium payment, as F-1...
Can an H-1B visa holder receive an honorarium or a stipend payment?

No, H-1B visa holders cannot be paid for anything other than a travel reimbursement. An H-1B is a specific employment-related...
Can departments use state or federal funds to pay sales tax on employee reimbursements?

Yes, sales tax is reimbursable on any funding source. There are no restrictions. Read more: University Controller’s Website, Tax FAQs
Can my department pay for Green Card fees?

Upon departmental approval to sponsor a foreign national employee, NC State is only required to pay for the costs associated...
Do I pay taxes at hotels?

Hotels charge both State sales and use tax, and an Occupancy tax which are allowed on the PCard. However, since...
Do W-8 forms expire?

In general, W-8 forms are valid for three calendar years following the year the form was signed, unless, any of...
Does completing a W-8 mean that my payment will be subject to tax withholding?

Whether a payment issued to a nonresident taxpayer is subject to tax withholding in the U.S. depends on several factors....
Does NC State file IRS Form 990, Return of Organization Exempt from Income Tax?

As a governmental unit created by legislation, NC State files Form 990-T Unrelated Business Income Tax, not Form 990. Read...
Does the university have articles of incorporation?

No. The university is created by State General Statute, Chapter 116 – Higher Education. Incorporation and corporate powers are defined...
For tax purposes, what are the requirements for NC State employees not working in North Carolina?

All NC State employees not working in the state of North Carolina must have their department complete a Notice of...
How are taxes calculated on employee’s paychecks?

The amount of Federal and State withholding taxes you pay is based on the information employees provide on their W-4...
How can a college/department ensure that methods of payment to suppliers result in an efficient use of funds?

Colleges and departments should review their methods of payments to suppliers and reduce as much as possible payments that are...
How can purchases for food or supplies be exempt from sales tax?

For purchases of foods or supplies to be exempt from sales tax, payment must be made with either an NC...
How do I access my 1098-T form?

Students enrolled in courses for academic credit during any academic period throughout the year may access their Form 1098-T by...
How do I make an appointment with the International Compensation and Taxation department?

The International Compensation and Taxation department is available to meet with International students, faculty and staff. To request an appointment,...
How is withholding tax calculated for foreign national payments?

The following information applies to foreign nationals (nonresident aliens) for all income-type payments (honoraria, scholarship, fellowship, independent contractor, royalty, etc.)....
I’ve accidentally paid for sales tax with my PCard and the merchant refuses to refund it. What do I do?

Document on the receipt that an attempt was made to obtain a refund/credit from the merchant and provide an explanation...
If a contractor qualifies for one of the exceptions from withholding, does the payer still issue a Form NC-1099PS to the contractor and to the Department of Revenue?

No. Form NC-1099PS is only required if North Carolina tax is withheld from the compensation. Read more: Frequently Asked Questions...

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Taxes

A venue signs a $10,000 contract with a performer in 2019 for a performance scheduled for 2020. The venue is required to place $2,000 in an escrow account held by the performer’s agent at the time the contract is signed. How much withholding is required in each year?

Are 1099s issued for travel reimbursement to guest speakers?

Are all international students, faculty and staff required to have a tax assessment?

Are meal delivery services or restaurant gift cards considered taxable income?

Are scholarship or fellowship payments made to a foreign national subject to tax withholding?

Are there sales tax exemptions for out-of-state hotels?

Can a contractor provide a statement or evidence to show that the 4% withholding will be in excess of its tax liability?

Can a contractor provide an affirmation or other statement that it will satisfy its income tax filing requirement and be exempt from withholding?

Can a department reimburse employees for taxes on business-related purchases paid by the employee with personal funds?

Can a foreign national receive an honorarium payment?

Can a J-1 visa holder be paid as a consultant or independent contractor?

Can a J-1 visa holder receive an honorarium payment?

Can an F-1 visa holder receive an honorarium payment?

Can an H-1B visa holder receive an honorarium or a stipend payment?

Can departments use state or federal funds to pay sales tax on employee reimbursements?

Can my department pay for Green Card fees?

Do I pay taxes at hotels?

Do W-8 forms expire?

Does completing a W-8 mean that my payment will be subject to tax withholding?

Does NC State file IRS Form 990, Return of Organization Exempt from Income Tax?

Does the university have articles of incorporation?

For tax purposes, what are the requirements for NC State employees not working in North Carolina?

How are taxes calculated on employee’s paychecks?

How can a college/department ensure that methods of payment to suppliers result in an efficient use of funds?

How can purchases for food or supplies be exempt from sales tax?

How do I access my 1098-T form?

How do I make an appointment with the International Compensation and Taxation department?

How is withholding tax calculated for foreign national payments?

I’ve accidentally paid for sales tax with my PCard and the merchant refuses to refund it. What do I do?

If a contractor qualifies for one of the exceptions from withholding, does the payer still issue a Form NC-1099PS to the contractor and to the Department of Revenue?