MEMORANDUM from December 4, 2013
To: Department of Health and Human Services (DHHS) Employees
From: Mark Gogal, Director DHHS Human Resources
Laketha M. Miller, Director DHHS Office of the Controller
Subject: Required State Tax Withholding Form for January Payrolls
The North Carolina Department of Revenue (NCDOR) has issued revised state tax withholding forms for the 2014 tax year and instructed employers to obtain new state tax withholding data for all employees.
NCDOR’s reason for this requirement is the NC General Assembly recently enacted House Bill 998 which becomes effective for taxable years beginning on or after January 1, 2014. Under the new law, all taxpayers will pay a lower rate and be granted a higher standard deduction. Taxpayers may no longer claim a personal exemption for themselves, their spouse, children, or any other qualifying dependents. Additionally, many deductions and tax credits that impact North Carolina withholding tax are no longer available for tax years beginning on or after January 1st.
The new law sets a single income tax rate and makes substantial changes to the taxable income calculation. As an employee, your current state tax withholding allowances may not be appropriate under the new law. To prevent under withholding state income tax, NCDOR requires that employees not completing the new withholding form be set to the default status of “Single” with “0” allowances effective 1/1/2014.
We are asking all DHHS employees to complete either the http://www.dornc.com/downloads/nc4ez.pdf Form NC-4 EZ or http://www.dornc.com/downloads/nc4.pdf Form NC-4, and then logon to Beacon ESS (Employee Self-Service) to enter your NC tax withholding selections. You must enter your selections in Beacon ESS by Friday, January 17th, in time for the January payroll deadline. Please note that if no changes are made, your NC tax withholdings will remain at the current default of ‘Single’ with ‘no allowances’ beginning with your January 2014 pay.
Attached are instructions for entering your NC tax withholding selections into Beacon ESS after completing the NC-4 EZ or NC-4. Additionally, a Powerpoint presentation of these instructions and the forms are available at the following DHHS weblink: http://www.ncdhhs.gov/humanresources/orientation/day_main.html. If you do not have Beacon access, hard copies of the NC-4 EZ and NC-4 forms are also available upon request in your local Human Resources Office.
If you have questions about entering your NC tax withholding selections into Beacon ESS, please contact your local Human Resources Office, or Best Shared Services at 1-866-622-3784 (or 919-707-0707 in the Raleigh area). Please have your Beacon personnel number available.
If you have questions completing the Form NC-4 EZ or Form NC-4 and/or changes to your tax withholding allowances, please call NCDOR at 1-877-252-4487.