Independent Contractors, How to Pay

Payment method:

Choosing the appropriate method for paying an independent contractor (including the payment of an honorarium) depends on several factors.  Please use the table below to select the appropriate payment method:

Individual - U.S. Citizen   Individual - Foreign National / Non-U.S. Citizen   Business
  • If recipient is a UNC Charlotte employee, use a PD-7 / PD-17 / ePAF form
  • If recipient is an employee of another NC state agency, use a CP-30 form
  • If other individual:
  1. If services to be performed will last more than eight (8) hours, complete Independent Contractor Checklist and submit to Tax Office
  2. Use Direct Pay Request form 
 
  1. Have the recipient complete the Foreign National Information Form and the Vendor Information Form-Foreign Persons (Form W-8BEN) and submit to the Tax Office
  2. Complete Independent Contractor Checklist and submit to Tax Office
  3. Use Direct Pay Request form
 

Generally not considered an "independent contractor"; use 49er Mart or refer to Pay for Consulting Services

Payments to non-NC based companies and individuals for performance-related events:

Non-wage compensation of more than $1,500 during a calendar year to a non-NC resident contractor for personal services performed in NC in connection with a performance, an entertainment or athletic event, a speech, or the creation of a film, radio or television program, is subject to NC income tax withholding at the rate of 4%.  This also applies to all services performed by ITIN holders.  Such payments should be requested using a Direct Pay Request.  A non-NC resident contractor is defined as an individual or business not domiciled in the state of North Carolina. 

Please refer to the following policies, procedures, and other resources below:

Policies Procedures Forms / Links Training and Reference Materials
University Policy 601.8, Appropriate Use of University Funds Procedures for Scholarship/Fellowship Payment to a Foreign National

Procedures for Other Payments to a Foreign National

Independent Contractor/Employee Checklist

Foreign National Informational Form - Student Version

Foreign National Informational Form - Visitor Version

Vendor Information Form - Foreign Persons (Form W-8BEN)

Direct Pay Request (DPR) Form

EPA Payroll/Personnel Action Form (PD-7)

Temporary Staff Employment Authorization Form (PD-17)

Request for Additional Payment for Work Performed for Other State Agency (CP-30)

Procedures to Other Payments to a Foreign National

Foreign National / Non-Resident Alien Tax Compliance Presentation

Contact for additional questions:

Please refer to the contacts listed on the Tax Office website.