Originally posted on August 26, 2021
Updated September 10, 2021
The NC Department of Revenue issued an Important Notice on August 23, 2021 updating information about North Carolina Withholding Tax.
The NCDOR provided NCACPA with a copy of the draft notice and solicited our comments and suggestions prior to its release. NCACPA is grateful to the members of our Taxation Committee for reviewing the draft and providing feedback. The NCDOR addressed all of our concerns when crafting the final notice.
The notice includes the following:
- Expiration of the automatic waiver of the penalty for failure to file Form NC-3 and required W-2 and 1099 statements in the format prescribed by the Secretary of Revenue.
- Waiver of the administrative requirement to file federal Forms 1099-MISC and 1099-NEC if statements do not report NC income tax withheld.
- Announcement of a new filing option for reporting North Carolina income tax withheld from non-wage compensation paid to payees.
The NCDOR’s eNC3 application provides multiple electronic filing options for both large and small businesses. More information, including step-by-step guides and videos on how to use the eNC3 application, is available at www.ncdor.gov/eNC3.
The NCDOR encourages all businesses to review this information on the DOR website to avoid the penalty. Questions about the eNC3 or this Important Notice can be directed to the Department at [email protected].
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.