Personal services rendered by non-North Carolina individuals and companies (including non-U.S. vendors) are subject to a 4 percent withholding under North Carolina law. The North Carolina Department of Revenue (NCDOR) has deemed personal services in connection with the following events to be subject to this 4% withholding:  "...a performance, an entertainment or athletic event, a speech or the creation of a film, ratio or television payment." 

This requirement is applicable to vendors who receive payments in excess of $1,500 from us in a calendar year. Please tell the Accounts Payable Coordinator in advance if the voucher is for a one-time payment under the limit. Please note that reimbursement for expenses is not subject to this withholding.

Non-U.S. aliens are also subject to this tax, unless they are covered by a tax treaty, in which case they are exempt. See Payments to Non-U.S. Citizens for more information on tax treaties.

Payments should not be increased to offset this withholding. Please contact the Accounts Payable Coordinator at x2206, prior to making payment arrangements, with any questions concerning the withholding requirements for non-North Carolina recipients. 

Additional information about this withholding may be found at Frequently Asked Questions About Withholding From Nonresidents for Personal Services Performed in North Carolina, on the NCDOR website.