News

State Income Tax Withholding for 2014

To:     School/Division HR Officers

    Business Managers

From: Elizabeth C. (Betsi) Snipes, Director of Payroll Services

Dennis Press, University Controller

Date: Nov. 25, 2013

The NC Department of Revenue (NCDOR) has provided important information about state income tax withholding for 2014:

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.

As a result of this Act, every employer must have all employees provide a new Employee’s Withholding Allowance Certificate, either Form NC-4 EZ or Form NC-4.

The new form must be completed by the employee and provided to the employer so the correct amount of State income tax is withheld for any payment periods beginning on or after January 1, 2014.

We wanted to inform you of this change and let you know the linked communication will be distributed to all employees on Tuesday, Nov. 26, 2013.  We appreciate any assistance that you may provide in helping us get this accomplished within the timeframe the NCDOR has provided to employers.  Thank you in advance. Should you have question or concerns, please email payroll@unc.edu.