Income Tax Withholding Tables And Instructions For Employers Page 13
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6943. Forms DP-40, DP-43, and NC-57 are available on
the Department’s website at You may
also obtain the forms by calling the Department at 1-877-
252-3052 (toll free).Withholding information submitted on
CD-ROM should be labeled with the following information:
company name, State withholding ID number, tax year, and
an indicator that the CD contains withholding information.
CD-ROM media should be mailed to the Department
of Revenue, Withholding Tax Support Section, P. O.
Box 25000, Raleigh, North Carolina 27640-0001.
26. Records to be Kept
You should retain the names, addresses, and social
security numbers of employees or payees receiving
payments; their withholding allowance certificates; the
amounts and dates of wages and other payments and
records of the amounts withheld; copies or records of
all reports or returns filed; and records of all payments
made to the Department. Retain these records for at least
three years after the last filing of all required reports for a
calendar year or the last payment of any amount due for
the calendar year, whichever is later.
27. Methods of Computing North
Carolina Income Tax Withholding
There are three primary methods for computing the
amount to withhold from wages. The wage bracket tables
are on pages 20 through 61. The formula tables for the
Percentage Method and the Annualized Wages Method
are on pages 14 through 19. These methods are suitable
for computer processing. In addition, an employer may
use any other method or formula to determine the amount
of tax required to be withheld if the amount determined is
substantially the same as that obtained by using the wage
bracket tables.
There is a difference in the tax calculated using the
percentage method and the tax determined from the
withholding tables. The tax tables calculate withholding tax
based on an income range. Applicable standard deduction
and personal exemption allowances are factored into the
tables. The percentage method calculates withholding
tax based on a specific dollar amount. Taxable income
is derived by reducing gross wages by the appropriate
deductions. For this reason, tax amounts derived from
one method will differ slightly from those derived from the
other.
Page 13
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