Finance Division

Withholding Tax

Based on South Carolina Department of Revenue Code Sections 12-8-540 and 12-8-550, when a department utilizes the services of a Non SC Resident individual or business to perform personal services within the State of SC, Clemson University may be required to withhold a percentage of the payment.

Withholding is not required if the Non Resident taxpayer submits to Clemson University an I-312 form (PDF) that certifies the Vendor is registered with either the SC Secretary of State or the South Carolina Department of Revenue or if the total payments to the Vendor do not meet certain minimum amounts (as noted below).

Click Here to register with the State of South Carolina.

If the Vendor does not provide Clemson University with a completed I-312 form and the designated amounts are exceeded, the following percentages must be withheld from the Vendor payment.

Paying Contractors
The South Carolina Department of Revenue Code Section 12-8-550 requires persons hiring or contracting with a Non Resident (not a resident of SC) taxpayer to withhold 2% of each payment made to the nonresident where the payments under the contract exceed $10,000 or could reasonably be expected to exceed $10,000.

Paying Rents Or Royalties
Code Section 12-8-540 requires persons making payment to a Non Resident taxpayer of rentals or royalties for SC properties at a rate of $1,200 or more a year to withhold 7% of the total of each payment made to a Non Resident taxpayer who is not a corporation and 5% if the payment is made to a corporation.

How To Process A Withholding Payment:

Enter a Voucher in CUBS, select the CU business unit.

Documentation for Voucher:

  • Signed contract
  • Approved Contract Review Form from CU Risk Management
    (This form may be obtained from E309 Martin Hall, 656-3354)

For Example:  If $20,000 is to be paid to a non-resident individual or business and they did not have an I-312 form, $400 would be paid to CU Payroll Account on a voucher and $19,600 would be paid to the individual or business.

Example of Voucher:

Charge to your chartfield, not the example, but always use account 2457 for the 2% Withholding Liability.

Withholding tax