North Carolina issues Information for entities withholding income tax

The North Carolina Department of Revenue has provided important information to employers and entities that withhold personal income tax discussing recent legislative changes and policies regarding those changes. The notice covers the following information:

  • Extension of the automatic waiver of the electronic filing requirement for Form NC-3 annual withholding reconciliations, W-2 withholding statements, and 1099 information returns due to be filed on or before January 31, 2018;
  • The $50 failure to file penalty that may be imposed for the untimely filing of Form NC-3s due on January 31, 2018;
  • Effective for tax years beginning on or after January 1, 2018, the repeal and replacement of the “Credit for Children” with a new “Child Deduction Amount,” which may result in a change in withholding allowances for employees and pension recipients; and
  • A change in withholding tax rates because the individual income tax rate is reduced to 5.25% from 5.499% and the standard deduction is increased, effective for tax years beginning on or after January 1, 2019.

The automatic waiver of the electronic filing requirement for NC-3s, W-2s, and 1099s does not alleviate a business of its responsibility to timely file paper forms, statements, or returns. For additional information, taxpayers may call 1-877-252-3052 to speak with a customer service representative or write to Customer Service, PO Box 1168, Raleigh, NC 27602. (North Carolina Department of Revenue, Important Information, September 15, 2017.)

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