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Depositing and Reporting Withheld Taxes: North Carolina

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • 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. See Annual Reconciliation Forms and Filing Deadlines.
  • Employers filing a certain number of Forms W-2 must file them electronically with the state Department of Revenue. Form NC-1099M must be used to report non-wage compensation paid to a payee (e.g., an independent contractor) for services performed in North Carolina and the North Carolina tax withheld from that income. See Information Return Reporting Requirements.