2014 NC-4 Withholding Requirement

Whether you are a business owner or an employee in NC, this tax law change applies to you.  If you ignore it, it could adversely affect you or your employees.  With the 2014 tax law changes, NC has simplified the tax code.  But if you look at the new NC-4 you may not view it as a simplification.  The form and process of claiming exemption is much more involved then it has been in the past.  If you want to claim anything other than 0 you can either complete the NC-4EZ or work through several pages of the NC-4 form.  Otherwise, you can only claim 0 as your exemption.  The lower the number of exemptions claimed the more tax you will have withheld.  It will be interesting to see how this affects our upcoming paychecks. 

It is worth noting that the NC rate will be lowered to 5.8% in 2014 so hypothetically we will all be paying lower taxes.