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. CitizenIndividual – Foreign National / Non-U.S. CitizenBusiness
  • If the recipient is a UNC Charlotte employee, use a PD-7 / PD-17 / ePAF form
  • If the recipient is an employee of another NC state agency, use a CP-30 form
  • For all other recipients:
  1. Complete an Independent Contractor Checklist and submit it to the Tax Office
  2. Use an eCR (electronic check request) form
  1. Ask the recipient to complete the Foreign National Information Form and the Vendor Information Form-Foreign Persons (Form W-8BEN) and submit it to the Tax Office
  2. Complete Independent Contractor Checklist and submit to Tax Office
  3. Use eCR (electronic check request) form

If the business is being paid under its employer identification number (EIN), it will not be classified as 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 an electronic check request (eCR). A non-NC resident contractor is defined as an individual or business not domiciled in the state of North Carolina.

Note about processing honorariums via eCRs:

  • If you are reimbursing travel expenses directly and solely related to an honorarium, you can either:
    • Submit the full amount to be paid via an eCR using the Payment Type of “Honorarium.” This full amount, if $600 or more, will be subject to income tax reporting for the recipient on a Form 1099-MISC. The recipient can deduct qualified business expenses on their income tax return; they should consult their own tax advisor for guidance. — OR —
    • Submit two eCRs:
      • 1. Submit the taxable honorarium amount via an eCR using the Payment Type of “Honorarium.” This amount, if $600 or more, will be subject to income tax reporting for the recipient on a Form 1099-MISC.
      • 2. Submit the reimbursement for travel expenses via an eCR using the Payment Type of “Reimbursement.” Attach a copy of the approved honorarium agreement, which will serve as authorization of the travel.

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

PoliciesProceduresForms / LinksTraining 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 Checklist (ICC) Form

Foreign National Informational Form – Student Version

Foreign National Informational Form – Visitor Version

Supplier InstructionsEmployee/Student Direct Pay Request (ESDPR) Form

Payroll/Personnel Action Form (PD-7)

Temporary Staff Employment Authorization Form (PD-17)

Dual Employment – 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

Independent Contractor Checklist FAQs

NC 4% withholding FAQ

Contact for additional questions:

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

Last Updated: July 1, 2020