All North Carolina state government agencies, universities, community colleges and institutions have been tasked with the responsibility of withholding and reporting on payments to nonresident aliens (foreign nationals) and foreign vendors in accordance with Internal Revenue Code (IRC) Section 1441 and policies established by the Office of the State Controller in August 2004.
The Tax Navigator software package is contracted through OSC and provided at a cost to state entities to assist in properly withholding and reporting payments made to nonresident aliens working and studying in North Carolina. The software consists of components that calculate all applicable tax withholdings, and deliver all necessary tax analyses and required forms.
Five community colleges have licenses to use, manage, and maintain the software locally on their campuses, while the remaining 53 colleges are managed through a central database at the North Carolina Community College System Office (NCCCSO) Systems Accounting and Special Projects section of the Division of Finance and Operations. All licenses are funded and paid for by the System Office. The five colleges that have the software on campus are:
- Asheville-Buncombe Technical Community College
- Central Piedmont Community College
- College of The Albemarle
- Guilford Technical Community College
- Wake Technical Community College
In accordance with FNIS policy, each college must use the College Contact Form to designate a contact person, or persons, in the areas of human resources/payroll, student services, and accounts payable/purchasing to communicate with the System Office and Office of State Controller (OSC) on matters related to foreign nationals and the Tax Navigator software. Colleges can select as many contacts in each area as needed, and the same person can be the contact for one or more areas.
The individuals listed on the Authorized Signature Designee Form will be responsible for signing the FNIS data form certifying that the information being submitted has been reviewed and is accurate to the best of his/her knowledge. These individuals will also be responsible for signing forms to be submitted to the IRS or immigration office when necessary. It is strongly recommended that the authorized signature designees be the CFO and the Human Resources Director.