§ 105-163.1. Definitions. - North Carolina Statutes

Article 4A.

Withholding; EstimatedIncome Tax for Individuals.

§ 105‑163.1. Definitions.

The following definitionsapply in this Article:

(1)        (Effective fortaxable years beginning before January 1, 2010) Compensation. – Considerationa payer pays a nonresident individual or nonresident entity for personalservices performed in this State.

(1)        (Effective fortaxable years beginning on or after January 1, 2010) Compensation. – Considerationa payer pays to any of the following:

a.         A nonresidentindividual or nonresident entity for personal services performed in this State.

b.         An ITIN holder whois a contractor and not an employee for services performed in this State.

(2)        (Repealedeffective for taxable years beginning on or after January 1, 2010) Contractor.– Either of the following:

a.         A nonresidentindividual who performs in this State for compensation other than wages anypersonal services in connection with a performance, an entertainment, anathletic event, a speech, or the creation of a film, radio, or televisionprogram.

b.         A nonresident entitythat provides for the performance in this State for compensation of anypersonal services in connection with a performance, an entertainment, anathletic event, a speech, or the creation of a film, radio, or televisionprogram.

(3)        Dependent. – Anindividual with respect to whom an income tax exemption is allowed under theCode.

(4)        Employee. – Anindividual, whether a resident or a nonresident of this State, who performsservices in this State for wages or an individual who is a resident of thisState and performs services outside this State for wages. The term includes anordained or licensed member of the clergy who elects to be considered anemployee under G.S. 105‑163.1A, an officer of a corporation, and an electedpublic official.

(5)        Employer. – A personfor whom an individual performs services for wages. In applying therequirements to withhold income taxes from wages and pay the withheld taxes,the term includes a person who:

a.         Controls the paymentof wages to an individual for services performed for another.

b.         Pays wages on behalfof a person who is not engaged in trade or business in this State.

c.         Pays wages on behalfof a unit of government that is not located in this State.

d.         Pays wages for anyother reason.

(6)        Individual. – Definedin G.S. 105‑134.1.

(6a)      (Effective fortaxable years beginning on or after January 1, 2010) ITIN contractor. – AnITIN holder who performs services in this State for compensation other thanwages.

(6b)      (Effective for taxableyears beginning on or after January 1, 2010) ITIN holder. – A person whosetaxpayer identification number is an Individual Taxpayer Identification Number(ITIN).

(7)        Miscellaneouspayroll period. – A payroll period other than a daily, weekly, biweekly,semimonthly, monthly, quarterly, semiannual, or annual payroll period.

(7a)      (Effective fortaxable years beginning on or after January 1, 2010) Nonresidentcontractor. – Either of the following:

a.         A nonresidentindividual who performs in this State for compensation other than wages anypersonal services in connection with a performance, an entertainment, anathletic event, a speech, or the creation of a film, radio, or televisionprogram.

b.         A nonresident entitythat provides for the performance in this State for compensation of anypersonal services in connection with a performance, an entertainment, anathletic event, a speech, or the creation of a film, radio, or televisionprogram.

(8)        Nonresident entity.– Any of the following:

a.         A foreign limited liabilitycompany, as defined in G.S. 57C‑1‑03, that has not obtained acertificate of authority from the Secretary of State pursuant to Article 7 ofChapter 57C of the General Statutes.

b.         A foreign limitedpartnership as defined in G.S. 59‑102 or a general partnership formedunder the laws of any jurisdiction other than this State, unless thepartnership maintains a permanent place of business in this State.

c.         A foreigncorporation, as defined in G.S. 55‑1‑40, that has not obtained acertificate of authority from the Secretary of State pursuant to Article 15 ofChapter 55 of the General Statutes.

(9)        Pass‑throughentity. – Defined in G.S. 105‑228.90.

(10)      (Effective fortaxable years beginning before January 1, 2010) Payer. – A person who, inthe course of a trade or business, pays a nonresident individual or anonresident entity compensation for personal services performed in this State.

(10)      (Effective fortaxable years beginning on or after January 1, 2010) Payer. – A person who,in the course of a trade or business, pays compensation to any of thefollowing:

a.         A nonresidentindividual or a nonresident entity compensation for personal services performedin this State.

b.         An ITIN holder whois a contractor and not an employee for services performed in this State.

(11)      Payroll period. – Aperiod for which an employer ordinarily pays wages to an employee of theemployer.

(11a)    Pension payer. – Apayor or a plan administrator with respect to a pension payment under section3405 of the Code.

(11b)    Pension payment. – Aperiodic payment or a nonperiodic distribution as those terms are defined insection 3405 of the Code.

(12)      Taxable year. – Definedin section 441(b) of the Code.

(13)      Wages. – The term hasthe same meaning as in section 3401 of the Code except it does not includeeither of the following:

a.         The amount ofseverance wages paid to an employee during the taxable year that is exempt fromState income tax for that taxable year under G.S. 105‑134.6(b)(11).

b.         The amount anemployer pays an employee as reimbursement for ordinary and necessary expensesincurred by the employee on behalf of the employer and in the furtherance ofthe business of the employer.

(14)      Withholding agent. – Anemployer, a pension payer, or a payer.  (1959, c. 1259, s. 1; 1967, c. 716, s. 3; 1973, c.476, s. 193; 1977, c. 657, s. 5; 1979, c. 801, s. 70; 1983, c. 713, ss. 79, 82;1985, c. 394, s. 1; c. 656, s. 7; 1985 (Reg. Sess., 1986), c. 853, s. 1; 1987,c. 778, s. 1; 1987 (Reg. Sess., 1988), c. 1015, s. 5; 1989, c. 36, s. 5; c. 728,s. 1.40; 1989 (Reg. Sess., 1990), c. 945, s. 5; c. 981, s. 6; 1991, c. 689, s.255; 1991 (Reg. Sess., 1992), c. 922, s. 7; 1993, c. 12, s. 9; c. 354, s. 15;1997‑6, s. 6; 1997‑109, ss. 1, 2, 4; 1998‑162, ss. 1, 2; 1999‑414,ss. 1, 2; 2000‑126, s. 2; 2003‑416, s. 4(b); 2009‑476, s. 1.)