Income Tax Withholding Tables And Instructions For Employers Page 6
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
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
697. Withholding from Nonresidents for
payer will be assigned an account identification number
and will receive forms for paying the State tax withheld.
Personal Services Performed in
The payer will initially be classified as a quarterly filer. The
North Carolina
filing frequency may change after the first year depending
on the amount of tax withheld.
The following definitions are applicable with respect
to withholding from non-wage compensation paid to
A payer that withholds tax from pensions and also
nonresidents for personal services performed in North
withholds tax from wages must report the withholding
Carolina:
from pensions with the wage withholding unless the
payer chooses to report the withholding from pensions
(a) Compensation. Consideration a payer pays a
separately. For those payers that do not choose to report
nonresident individual or nonresident entity for personal
the two types of withholding separately, the payment of tax
services performed in North Carolina.
withheld from pensions is due at the time the withholding
from wages is due and the payer will be subject to penalties
(b) Nonresident Contractor. A nonresident individual
and interest on both types of withholding based on that due
who performs, or a nonresident entity that provides for the
date. Payers that also withhold from wages but choose to
performance, in North Carolina for compensation other
report the withholding from pensions separately must file
than wages any personal services in connection with a
Form NC/BR to receive a separate account identification
performance, an entertainment or athletic event, a speech,
number. They will receive separate forms for paying the
or the creation of a film, radio, or television program.
tax withheld from pensions.
(c) Nonresident entity. Any of the following:
A payer that initially chooses to report withholding from
(1) A foreign limited liability company that has
pensions separately may, at any time, begin reporting the
not obtained a certificate of authority from
two types of withholding together. If combined reporting is
the Secretary of State pursuant to Article 7 of
preferred, a payer should report the combined withholding
Chapter 57C of the General Statutes.
under the account number for reporting wages. The
(2) A foreign limited partnership or a general
payer should complete the Out of Business Notification for
partnership formed under the laws of any
the separate pension withholding account and file it with
jurisdiction other than North Carolina, unless
the Department. The separate withholding account will
the partnership maintains a permanent place
be closed. A payer that initially reports the two types of
of business in North Carolina.
withholding at the same time may choose to begin reporting
(3) A foreign corporation that has not obtained a
the withholding on pensions separately by notifying the
certificate of authority from the Secretary of
Business Registration Unit. The payer must continue to
State pursuant to Article 15 of Chapter 55 of the
report the two types of withholding together until the payer
General Statutes.
receives the separate account identification number and
remittance forms from the Department. In either case, the
(d) Payer. A person who, in the course of a trade or
payer must file separate annual reconciliations beginning
business, pays a nonresident individual or a nonresident
with the year in which the choice is changed.
entity compensation for personal services performed in
North Carolina.
Annual Statements. Payers must report pension
income and State tax withheld on Federal Form 1099-
(e) Personal services income.
Non-wage
R, Distributions From Pensions, Annuities, Retirement
compensation.
or Profit-sharing Plans, IRAs, Insurance Contracts, etc.
(f) Withholding agent. An employer or a payer.
Form 1099-R must be given to the recipient on or before
January 31 following the calendar year in which the
Withholding requirement. If, in the course of your
pension payments were made. The payer must file an
trade or business, you pay compensation of more than
annual withholding reconciliation (Form NC-3) with the
$1,500 during the calendar year to a nonresident contractor
Department of Revenue that reconciles the amounts
for personal services performed in North Carolina, you
withheld from each recipient. Payers choosing to report
must withhold North Carolina income tax at the rate of 4
pension withholding with wage withholding must file one
percent from the compensation.
annual reconciliation report that includes the two types of
withholding. Payers subject to both wage withholding and
The tax must be withheld from any nonresident
pension withholding that report the two types of withholding
individual and from any nonresident entity (C or S
separately must file separate annual reconciliations for
corporation, partnership, or limited liability company)
each type of withholding. The annual reconciliation for
receiving personal services income in connection with a
withholding from pensions is due on or before February
performance, an entertainment or athletic event, a speech
or the creation of a film, radio, or television program. Tax
28.
Page 6
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Nc-30 - Income Tax Withholding Tables And Instructions For Employers - North Carolina - 2017
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
Related Categories
Parent category: Financial