North Carolina withholding changes announcement

The North Carolina Department of Revenue (NCDOR) recently enacted significant changes to the State’s income tax laws effective Jan. 1, 2014. The new regulations include substantial changes to the manner in which state income tax withholding is calculated.

To accommodate the new regulations, the NCDOR also issued revised state tax withholding forms (NC-4) for the 2014 tax year and is requiring employers to obtain new state tax withholding data for all employees.

What this means to UNC Hospitals/UNC Faculty Physicians' employees:

Your current state tax withholding allowances may not accurately reflect your 2014 NC state tax liability. To comply with the NCDOR requirements, all employees will automatically be reverted to a withholding status of Single with Zero (0) exemptions effective Dec. 26, 2013 (after the last payroll of calendar year 2013 has been processed). 

On or after Dec. 27, 2013, employees should update their 2014 withholding allowances if they do not choose to remain at single and zero (if single and zero is adequate, no action is required by the employee).

To have your adjusted withholding allowances effective with the Jan. 15 payroll, you must update your NC-4 by Jan. 7, 2014.

How to update your 2014 withholding allowances:

  • Employee Self Service
    We strongly encourage all employees to update their withholding allowances via the Employee Self Service (ESS) website (Internet Explorer only). All employees have access to ESS and you can review the steps to update your withholding allowances in this PDF. With ESS there are no forms to complete, print, fax or otherwise deliver to Payroll - your file is updated immediately.

  • Print, complete, and deliver/fax the file to Payroll
    As an alternative to ESS, employees may download the new 2014 Employees Withholding Allowance Certificate, print and complete the forms then deliver to Payroll directly or by fax (919-966-5148) following the same deadlines mentioned above. NC-4 Forms and instructions can also be found on the Payroll website.