To: HR Officers and Secondary Contacts, University Business Managers
From: David Lucus, Payroll Tax Manager
Re: Status of Tax Withholding Initiative for University Employees Working Outside the State of North Carolina
In late August you received a communication regarding the recently availability to withhold the state payroll tax of the state in which an employee resides and works if it is outside of North Carolina. Our goal was to leverage this previously unavailable functionality beginning with the 2016 tax year. To do so, we needed to:
- identify these individuals
- identify the state other than NC in which they are residing and working,
- register with applicable state agencies in those identified states,
- determine the tax withholding status these individuals would like to declare and
- determine the tax withholding/remittance requirement of those identified states.
We received tremendous response to our request for your help in identifying individuals who may be affected by this change in applicable tax withholding status. However, the registration process with applicable state agencies in the identified states is taking longer than the initial estimates. Our revised goal is to begin withholding payroll tax for other states in second quarter 2016.
We appreciate your assistance and will keep you updated on this initiative’s progress. If you have any questions, please contact me at 919-962-0046 or dwlucus@email.unc.edu.