university payroll robin nowlin & joanie aitken. out of state taxes w-2 mail outs foreign...

University Payroll

Robin Nowlin & Joanie Aitken

OUT OF STATE TAXES

W-2 MAIL OUTS

FOREIGN NATIONAL STUDENTS

JOANIE AITKEN

Employees working Outside ofNorth Carolina

• General Information:

– NC State University is registered as an employer in over 30 states in the United States, Puerto Rico, and the Czech Republic.

– Taxes withheld are based on the employee is providing services, not where the employer is located.

What does the department do when they hire or relocate a current employee to a

place outside of North Carolina?

• Complete the Notice of Employee Working Outside of North Carolina form at the HR website,

http://www.ncsu.edu/human_resources/forms/payroll/pyrl13.pdf

• Send it to Nancy Crumpler at the address on the bottom of the form before the start of the out of state employment.

What Payroll does when notified of an out of state employee

• Verify we are registered in the state as an employer. If not, we register with the state.

• Get the employee the correct state withholding form to complete. NC-4 forms only work in North Carolina.– Employee self service will not work for claiming

allowances for state income tax. It is only set-up for North Carolina taxes.

• Determine if there are local taxes to withhold in addition to state taxes.

Consequences of Incorrect Tax Withholding

• For the Employee– They have to file a tax

return with the state that incorrectly received to get their taxes back.

– They have to file a tax return in the correct state and pay all taxes when filing. They are subject to penalties for under withholding.

• For NC State University as the employer– We are subject to fines

and interest for not withholding taxes in the state where the employee was working.

A New Twist

Missouri W-2s for 2005, 2006, & 2007Total of 20 employees with MO addresses on their W-2s• 5 W-2s issued to students who worked on campus and

used their parents’ address in Missouri• 9 W-2s issued to former NCSU employees who worked

during the year in North Carolina and relocated to Missouri. They updated their addresses for the W-2s.

• 7 W-2s issued to new employees at NC State University from Missouri who did not update their addresses to North Carolina in the HR system until after W-2s were issued.• Note: 2 employees did not update their addresses for 2

years receiving 2 W-2s with Missouri addresses.

OUT OF STATE TAXES

W-2 MAIL OUTS

FOREIGN NATIONAL STUDENTS

JOANIE AITKEN

Updating Addresses for 2011 W-2s

Payroll will be sending departments towards the end of September/ beginning of October, employee addresses with the following criteria for updating:

• Out of state addresses for non-students• Campus addresses• Incorrectly formatted addresses

OUT OF STATE TAXES

W-2 MAIL OUTS

FOREIGN NATIONAL STUDENTS

JOANIE AITKEN

Foreign National Students working on campus

• Estimated 900 new international students arriving for Fall Semester,

• Over 75% of them will be on graduate assistantships,• They must have a completed tax assessment done by Michelle

Anderson, Foreign National Tax Specialist before they can receive their first check.

• Options for receiving their first check in a timely manner.– Schedule an appointment prior to the September 2nd payday through

OIS Online, Section “Tax Assessments” or e-mail foreignnationaltax@ncsu.edu

– Wait in line during walk-in hours on September 2nd

OUT OF STATE TAXES

W-2 MAIL OUTS

FOREIGN NATIONAL STUDENTS

JOANIE AITKEN