North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0126 - SUBMISSION OF CERTAIN WITHHOLDING ALLOWANCE CERTIFICATES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) An employer is required to
											  submit a copy of any withholding allowance certificate on which the employee claims more than 10 withholding
											  allowances or claims exemption from withholding and the employee's wages would normally exceed two hundred
											  dollars ($200.00) per week.
(b) An employer filing quarterly
											  withholding reports shall submit copies of the certificates received during the quarter when filing the
											  quarterly report. An employer filing monthly withholding reports shall submit copies of the certificates
											  received during the quarter when filing the monthly report for the third month of the calendar quarter.
											  Copies may be submitted earlier and for shorter reporting periods.
(c) Copies of the certificates, along with a letter showing the employer's
											  name, address, withholding identification number, and the number of certificates submitted, shall be mailed
											  to: North Carolina Department of Revenue, Tax Compliance - Withholding Tax, P.O. Box 25000, Raleigh, North
											  Carolina 27640.
(d) The employer shall withhold on the basis of
											  the certificate until written notice is received from the Department that the certificate is defective. As
											  part of that written notice, the Department shall advise the employer to ignore the allowance certificate
											  filed and to withhold using the number of allowances specified.
(e) The employer shall furnish the employee a copy of the written notice
											  upon receipt.
(f) If the employee files a new certificate, the
											  employer shall honor that certificate only if the employee does not claim exempt and claims a number smaller
											  than the number allowed in the Department's written notice. If the new certificate claims a number larger
											  than the employee has been allowed and the employee specifies, in writing, any circumstances as justification
											  to support the claims, the employer shall, upon receipt, forward a copy of the certificate and the employee's
											  written statement to the Department for review. The employer shall continue to withhold as specified in the
											  Department's written notice until written notice is received from the Department advising the employer to
											  withhold on the basis of the new certificate.
(g) To increase
											  withholding, an employee or a recipient of a pension payment may claim less than his or her allowable
											  allowances or may enter into an agreement with his or her withholding agent and request that an additional
											  amount be withheld by entering the desired amount on Form NC-4, NC-4 EZ, NC-4 NRA, or NC-4P.
(h) An employee working for two or more employers or a recipient receiving
											  pension payments from two or more pension payers shall claim his or her allowable allowances with only one
											  withholding agent and claim zero allowances with the other withholding agents.
(i) If an employee claims total exemption from withholding, the employee's
											  wages shall be exempt from withholding of North Carolina income tax for the remainder of the calendar year,
											  and through February 15 of the succeeding year unless the employee withdraws the statement during the year.
											  An employee claiming exemption from withholding shall complete a new certificate by February 15. If the
											  employee does not complete a new certificate, the employer shall withhold on the basis of a single individual
											  with no allowances.
Authority G.S. 105.163.2;
													 105-163.2A; 105-163.5; 105-262;
Eff. June 1, 1990;
Amended Eff. April 1, 2001; June
													 1, 1993;
Readopted Eff. May 1, 2016.