Form Nc-30 - Income Tax Withholding Tables And Instructions For Employers - North Carolina - 2017 Page 9
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46has no provision requiring backup withholding.
their employer Form NC-4 EZ with line 4 checked. To
maintain the exemption, the employee must submit a
Farm labor. Farmers are required to withhold State
new Form NC-4 EZ each year. The Act does not apply
income tax from wages paid to agricultural workers if
to military spouses who are domiciled in North Carolina.
they are required to withhold tax for federal purposes.
Withholding from wages paid to military spouses
domiciled in North Carolina is still required.
See Federal Publication 15, Circular E, Employer’s
Tax Guide, for additional information regarding taxable
Seamen. The Vessel Worker Tax Fairness Act, 46
wages.
U.S.C., 11108, prohibits withholding of state income
tax from the wages of a seaman on a vessel engaged
11� Payments Exempt from
in foreign, coastwide, inter-coastal, interstate, or
Withholding
noncontiguous trade or an individual employed on a
fishing vessel or any fish processing vessel. Vessels
Employers are required to withhold on wages to the
engaged in other activity do not come under the
same extent required for federal income tax purposes.
restrictions; however, any seaman who is employed in
A recipient of any payments exempt from withholding is
coastwide trade between ports in this State may have
required to pay estimated income tax if the recipient’s
tax withheld if the withholding is pursuant to a voluntary
income meets the minimum requirements for filing.
agreement between such seaman and his employer.
If you and the individual wish to enter into a voluntary
Indian Reservation Income: Employers are not
agreement to withhold North Carolina tax, you must
required to withhold State income tax from wages
report and pay the amount withheld to the Department,
earned or received by an enrolled member of a federally
and the individual will receive credit on his income tax
recognized Indian tribe if such income is derived from
return provided you follow the rules which apply to
activities on a federally recognized Indian reservation
withholding. Since the agreement is voluntary, credit
while the member resided on the reservation. An
cannot be claimed for any amount withheld unless it
employee who meets these criteria should furnish their
is properly paid to the Department of Revenue. The
employer Form NC-4 EZ with line 3 checked. To maintain
individual should complete a withholding allowance
the exemption, the employee must submit a new Form
certificate, Form NC-4, NC-4 EZ, or NC-4 NRA, and
NC-4 EZ each year. Intangible income having a situs
request that the agreed amount be withheld.
on the reservation and retirement income associated
with activities on the reservation are considered income
Domestic employees. Employers are not required
derived from activities on the reservation.
to withhold State income tax from the wages of domestic
employees; however, the employer and employee may
enter into a voluntary agreement to withhold from the
12� Payroll Period
employee’s wages. Employers may wish to contact
See Federal Publication 15, Circular E, Employer’s
the Employment Security Commission regarding any
Tax Guide, for information on payroll period.
employment insurance liability.
13� Supplemental Wages
Military Spouses� The Military Spouses Residency
Relief Act of 2009 amended the Servicemembers Civil
If you pay supplemental wages separately (or
Relief Act (“SCRA”) to provide that a spouse shall neither
combine them with regular wages in a single payment
lose nor acquire domicile or residence in a state when
and specify the amount of each), the income tax
the spouse is present in the state solely to be with the
withholding method depends in part on whether you
servicemember in compliance with the servicemember’s
withhold income tax from your employee’s regular
military orders if the residence or domicile is the same
wages. If you withhold income tax from an employee’s
for both the servicemember and spouse.
regular wages, you can use one of these methods for
the supplemental wages:
The Act prohibits North Carolina from taxing the
income earned for services performed in North Carolina
(a) Withhold a flat 5.599%, or
by a spouse of a servicemember stationed in North
Carolina if (1) the servicemember is present in North
Carolina solely in compliance with military orders; (2)
(b) Add the supplemental and regular wages for
the spouse is in North Carolina solely to be with the
the most recent payroll period this year. Then figure
servicemember; and (3) the spouse is domiciled in
the income tax as if the total were a single payment.
the same state as the servicemember. If all three of
Subtract the tax already withheld from the regular wages.
the conditions are met, an employer is not required to
Withhold the remaining tax from the supplemental
withhold North Carolina tax from wages paid to such
wages. If you did not withhold income tax from the
military spouses if the employee has furnished to
employee’s regular wages, use method (b).
Page 9
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form As/rp1 - Income Tax Withholding, Sales And Use Tax, Registration Application Instructions
Financial
Form Nc-br - Business Registration Application For Income Tax Withholding, Sales And Use Tax, And Machinery And Equipment Tax
Life
Form De 1p - Employers Depositing Only Personal Income Tax Withholding Registration And Update Form - 2016
Legal
Form Mw507p - Maryland Income Tax Withholding For Annuity, Sick Pay And Retirement Distributions
Financial
Related Categories
Parent category: Financial