Campus Research Administrators Meeting Thursday, December 8, 2016 Multi-state Updates Campus Research Administrators Meeting Thursday, December 8, 2016

Multistate Initiative Project Scope Centralized approach for managing out of state programs and employment for the University and DUHS (letter from Dr. Trask and Dr. Fulkerson) Applies to exempt (monthly) employees only Nonexempt(biweekly) employees should not be engaged in out of state programs as Duke employees. Each state has varying wage and hour requirements These individuals should be hired through staffing agencies. Primary Factors for Implementation Support for Out of State Programs Programs conducted in states/districts outside of North Carolina Distance Learning Compliance

Why is this important? Employer Taxes and Reporting Requirements Registration Requirements Impact on Individual Employees Withholding Rates are Different for Other States Some States require local/city, county, in addition to state taxes Employees will be required to file multiple tax returns Employees will need to track time in the individual states Exposure for Duke Penalties and Interest Increased risk for litigation Oversight and understanding of current and future exposure

Current states/districts available for Duke Employment/Exempt Staff States Available as of January 2017 New York Texas California Florida Georgia Maryland South Carolina Tennessee Virginia Washington, DC

Alternative options for departments Assess opportunities to conduct programs remotely, using onsite resources at Duke. Leverage the use of staffing agencies, in which case the individuals would be employees of the staffing agency rather than Duke. For short term arrangements, coordinate with the host entity to hire the individual as an employee. Duke can then issue the payment to the host institution.

Business Process Departments engage the following partners regarding new programs : Departmental Business Managers Management Centers Human Resources and Finance Partners If programs are approved, payment methods will be defined and assistance from department and/or employee is needed: If payments are issued by Duke to employees, the proper forms must be collected Each state has a unique form, unless the state defaults to the federal withholding allowances. Home addresses should reflect state of residence Campus addresses should reflect work address

Business process cont’d…. Appropriate partners are engaged to evaluate risks and determine if Duke elects to register in the applicable state Human Resources Payroll Legal Counsel Corporate Tax Leadership Team If approved, determine timeline for implementation Any additional states will be implemented on a calendar year basis, effective January 1 of the applicable year Current programs/employment where Duke is not registered is under review