Depositing and Reporting Withheld Taxes: North Carolina
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- In North Carolina, an employer's required income tax deposit and return filing frequency depends on how much the employer withholds on average each month. See Deposit Frequencies and Thresholds; Deposit and Filing Due Dates.
- Employers are subject to serious penalties for noncompliance with the income tax filing and payment requirements. Employers and responsible corporate and other officers may also be held personally liable. See Penalties.
- Employers that remit a certain amount of taxes each month are required to deposit by electronic funds transfer. See Electronic Deposit Requirements.
- All North Carolina employers must file an annual reconciliation return. Certain employers must submit Forms W-2 on magnetic media. See Annual Reconciliation Forms and Filing Deadlines; Electronic and Magnetic Media Form W-2 Reporting Requirements.