North Carolina Releases New Nonresident Alien Employee Withholding Allowance Certificate: Employment Law Manual Updated

Authors: Rena Pirsos and Melissa A. Silver, XpertHR Legal Editors

The North Carolina Department of Revenue has released a new version of Form W-4 for employees who are nonresident aliens - Form NC-4 NRA, Nonresident Alien Employee's Withholding Allowance Certificate. Effective January 1, employers in the state must use the new form, after it is completed and submitted by nonresident alien employees, to determine their state income tax withholding in lieu of the standard Form NC-4 or federal Form W-4. Based on this new form, some of the withholding rules applicable to nonresident alien employees are different than they are for resident employees.

Accordingly, the North Carolina Withholding Taxes, New Hire Paperwork and Immigration, Form I-9 and Work Visas sections of the Employment Law Manual have been updated.