To: University Employees
From: Walter Miller, Director of Payroll Services
We want to give you advance notice of tax rate changes for the calendar year 2019 which you will notice beginning with your January paychecks. Note: The tax year 2019 changes generally are used on tax returns filed in 2020.
North Carolina State Tax Withholding Rate Changes
Effective Jan. 1, 2019, the North Carolina state tax withholding rate is decreasing from the current rate of 5.599% to 5.35%. Because of this change, employees will see an increase in their net pay amount assuming they keep 2019 tax withholdings the same as current 2018 tax withholdings.
Federal Tax 2019 Standard Deduction Increase
The Internal Revenue Service (IRS) has announced an inflation adjustment to the standard deduction amount for 2019. Details about this change can be found at https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2019. This primarily affects employees when they file taxes and when considering how much tax to have withheld each paycheck.
Employees are also reminded to perform a paycheck checkup using the Withholding Calculator, as shared in an April communication, to ensure that they are withholding an appropriate amount of tax from their paychecks. The IRS Withholding Calculator is located at irs.gov/withholding.
Updating NC-4/W-4 Information
Employees can use the results from the Withholding Calculator to determine if they should complete a new Form W-4, Employee’s Withholding Allowance Certificate. They may also wish to change their withholding for North Carolina as well. Payroll Services has made Federal and State of North Carolina Income Tax Withholding forms (W-4 and NC-4 forms) available for viewing and updating via the Self-Service menu on the ConnectCarolina home page. Please refer to https://ccinfo.unc.edu/wp-content/uploads/sites/219/2016/01/W-4-and-NC-4-job-aid_english.pdf for detailed instructions.
Paper W-2 Opt Out *NEW for 2018*
Employees can now opt-out of receiving paper W-2 forms beginning with the current 2018 calendar year. Opting out of receiving a paper W-2 (also known as consenting to receive a W-2 form electronically), provides the most secure method of W-2 distribution, makes use of the Connect Carolina system, saves paper and saves costs.???Please refer to https://ccinfo.unc.edu/wp-content/uploads/sites/219/2018/09/How-to-Opt-Out-of-Printed-W-2-QRC.pdf for instructions. This is new functionality for 2018. Employees have previously been able to access W-2s electronically and have signed up for 2-step verification (or DUO). Paper W-2 Opt Out is new and different.
NC Flex and Deductions Updates
Employees are encouraged to check their NC Flex and health insurance elections chosen during the benefits open enrollment period, as some rate and plan options are different for 2019. Benefit questions should be directed to the Office of Human Resources at benefits@unc.edu.
Help and Questions
Employees who need technical assistance viewing or updating their personal tax information should contact the Help Desk at 962-HELP. Employees should contact Payroll Services at payroll@unc.edu if they are unable to update their tax forms after working with the Help Desk.
Step-by-step instructions, job aids and more can be found on the Connect Carolina User website, Online Employee Tax Forms page: https://ccinfo.unc.edu/featured-resources/online-employee-tax-forms/.
This message is sponsored by: Payroll Services