The North Carolina General Assembly recently enacted House Bill 998 which becomes effective for taxable years beginning on or after January 1, 2014. Under this new law, all taxpayers will pay a lower rate and be granted a higher standard deduction. Taxpayers may no longer claim a personal exemption for themselves, their spouse, children, or any other qualifying dependents. Additionally, many deductions and tax credits that impact North Carolina withholding tax are no longer available for tax years beginning on or after January 1st. To prevent under withholding state income tax, the North Carolina Department of Revenue is requiring employers to set the tax default status of Single with 0 allowances for all employees not completing a new North Carolina tax withholding form.

Both Form NC-4EZ and Form NC-4 are attached. Our payroll software will default everyone’s North Carolina tax withholding to a status of Single with 0 allowances on January 1st and this status will remain in effect until we receive a completed North Carolina tax form in the payroll department. Please determine which form you need and turn in your completed North Carolina tax form to the payroll secretary at your school site by Thursday, January 2, 2014.

The following information is taken from the NCDOR Website:

Form NC-4 EZ – Employees should use this form if they plan to claim the NC Standard deduction and plan to claim no tax credits or only the credit for children, if they qualify to claim exempt status, or if they prefer not completing the extended Form NC-4. Employees should understand Form NC-4 EZ can still be used even if they plan to itemize deductions for their tax filing.

Form NC-4 – Extended withholding form which may provide more precise withholding figures, but will require historical tax return information and estimation of 2014 income, deductions, and credits from the employee.

Neither Haywood County Schools Human Resource Department members nor Finance Department members are able to assist with the completion of new forms. If you need assistance, please contact your tax advisor or call the Taxpayer Assistance and Collection Center at 1-877-252-3052.

If you are interested in reading more about the new tax law changes, please visit the North Carolina Department of Revenue website: