North Carolina publishes updated Income Tax Withholding Tables and Instructions for Employers

North Carolina has published an updated Income Tax Withholding Tables and Instructions for Employers (NC-30) booklet for TY 2020. See below for details on changes.
 

  • The 4% mandatory withholding requirement has been applied to all personal services for non-wage compensation. Previously this only applied to non-resident contractors.
     
  • Withholding needs to be taken out of any compensation for personal services in North Carolina (1099)

  * Effective for non-wage compensation paid on or after January 1, 2020, a payor must use Form NC-1099M to report non-wage compensation paid to a payee
 

  • Increased the amount of the North Carolina standard deduction with corresponding revisions to the Formula Tables for Percentage Method Withholding Computations and Annualized Method Withholding Computations, as well as the Wage Bracket Tables
     
  • North Carolina parties need to issue NC-1099Ms or 1099-MISC or 1099-NEC 30 days after payment of compensation to a payee (reduced from 45 days)

To view the full updated document, click here.

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Author

Gerry Nelligan

Gerry Nelligan is a Regulatory Analysis Supervisor at Sovos, leading a team of counsels covering information reporting, including 10-Series IRS reporting, Affordable Care Act (ACA) reporting and Automatic Exchange of Information (AEOI). Gerry received his J.D. from Suffolk University Law School and his B.A. from Providence College. He is a licensed attorney in the state of Massachusetts.
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