Foreign National Compliance Program
The Foreign National Compliance Program states that 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 businesses in accordance with Internal Revenue Code (IRC) Section 1441 and policies established by the Office of the State Controller (OSC) in August 2004. Effective January 1, 2024, the Sprintax/Calculus software package is contracted to provide state entities assistance 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. All 58 colleges have access to use, manage and maintain the software through “the cloud.” The cost of the software is funded and paid by the System Office.
In accordance with the Foreign National Compliance policy, each college designates contacts in the areas of human resources/payroll, student services, and accounts payable/purchasing to communicate with the System Office on matters related to foreign nationals and the Sprintax/Calculus software. Colleges can select as many users in each area as needed.
Each college is responsible for entering all appropriate information for nonresident aliens (foreign nationals) and foreign businesses in the Sprintax/Calculus software. The Foreign Visitor Information Form & Instructions (see below) is provided as an information gathering tool for colleges.
Colleges are reminded, no payment(s) should ever be processed for any nonresident alien or foreign business without processing all detailed information through the Sprintax/Calculus software to determine the proper tax withholding.
Sprintax/Calculus is a tool that helps to ensure that students, scholars, and businesses are taxed correctly on income earned in the US and are withheld and reported to the IRS.
Sprintax/Calculus should be used for foreign students, scholars, teachers, researchers, trainees and all other international visitors with F, M, J and Q cultural and educational exchange visas and H and L skilled worker visas.
Based on the information provided, Sprintax/Calculus will calculate students’, scholars’, and businesses’ tax withholdings and determine whether they are eligible for any tax treaties or deductions.
Sprintax/Calculus prepares reports on the tax status of international students, scholars, and businesses by identifying how they should be taxed on income from your institution. Sprintax/Calculus will also prepare appropriate year-end IRS reports for community colleges as necessary.
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