New state tax form required for all employees

December 13, 2013

Resulting from the North Carolina Tax Reform Law passed earlier this year, the state’s Department of Revenue recently notified employers that all employees must complete a new “Employee’s Withholding Allowance Certificate.” You may choose to complete the Form NC-4 EZ or the Form NC-4.

Please complete and sign the appropriate form and submit to Payroll or Human Resources by 5:00 p.m. on December 20, 2013, either by scanned copy through email to payroll@wfu.edu or by mail. If your form is not received by December 20th, Payroll is required to withhold North Carolina taxes at the single status with zero allowances.

A Frequently Asked Questions document is available from the Department of Revenue, and additional information is included below. They also have an NC-4 Form call-number to answer your questions on how to complete the form; that number is (877) 252-4487.

As provided by the North Carolina Department of Revenue:

The North Carolina General Assembly recently enacted House Bill 998, which becomes effective for taxable years beginning on or after January 1, 2014. Under this new law, all taxpayers will pay a lower rate and be granted a higher standard deduction. Taxpayers may no longer claim a personal exemption for themselves, their spouse, children, or any other qualifying dependents. Additionally, many deductions and tax credits that impact North Carolina withholding tax are no longer available for tax years beginning on or after Jan. 1.

North Carolina allowances are no longer available for spouses, dependents over age 17, or for all income levels; therefore, your determination of allowances for tax year 2014 will differ from previous years. Most taxpayers will not be entitled to as many allowances and, as a result, more taxpayers will claim zero allowances. Although the state income tax is decreasing to a uniform rate of 5.8% and the allowance method is changing, employees may see an increase or decrease in tax withholding next year.

If you have questions, please contact Payroll at 336-758-2960 or email at payroll@wfu.edu.