1107 - Policy on Required Payroll Taxes

Introduction

Purpose

The University provides this Policy to apprise its employees of taxes required to be withheld from their payroll.

Scope

All University of North Carolina at Chapel Hill employees receiving compensation through Payroll Services.

Policy

Policy Statement

Payroll Services will process payroll tax deductions imposed by federal, state and local laws for all employees of the university. Employees who are subject to FICA taxes (Social Security, Medicare, and Additional Medicare taxes) will be taxed at the applicable rate defined for the respective tax year. All other federal, state, and local taxes will be withheld at the applicable rates or as defined by withholding tables or regulations of the respective taxing authority.

Mandatory Payroll Tax Forms

The following tax forms must be submitted via SelfService in ConnectCarolina:

  • Federal Tax Form W-4
  • North Carolina Tax Form NC-4

In absence of SelfService submissions of tax forms, the default Federal and North Carolina tax set up for the employee will be the maximum withholding rate (Single with zero allowances).

For more information, please see Finance Procedure 1107.1 - Procedure for Completing Federal and State Withholding Tax Forms.

Exceptions

The following exceptions apply to submitting tax forms W-4 and NC-4 in Self-Service.

  • Employees who work outside of North Carolina can complete the Federal W-4 in Self-Service, however they do not need to complete the NC-4 in Self-Service.  The respective state tax form (for the state where the employee is located when performing services for UNC) will need to be submitted via email to MultistateTax@unc.edu.  For more information, please see Finance Procedure 1107.2 - Procedure for Payroll Reporting of Employees Who Work Outside of North Carolina.
  • Employees who are in Nonresident Alien tax status will not be able to submit tax forms W-4 and NC-4 in Self-Service and will receive an error message stating such when in the Self-Service tax forms.  Any tax forms needed from these individuals will be requested by the NRA Payroll Tax Accountant.
  • Employees who are claiming exemption from NC state withholdings must submit paper tax form NC-4EZ to Payroll Services.

Related Requirements

University Policies, Standards, and Procedures

Contacts

Primary Contact
Subject Contact Telephone Fax E-Mail
Required Payroll Taxes Payroll Services 919-962-0047   payroll@unc.edu

History

Revised:

  • June 6, 2023-added language for exceptions.
  • October 8, 2018 - Updated policy to reflect Required Payroll Taxes as opposed to Required Salary and Benefit Deductions.
  • October 13, 2017 - updated main Payroll phone number.
  • September 3, 2009
  • May 29, 2007
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Details

Article ID: 131377
Created
Thu 4/8/21 9:07 PM
Modified
Tue 6/6/23 3:02 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director of Payroll Services
Next Review
Date on which the next document review is due.
04/13/2026 12:00 AM
Last Review
Date on which the most recent document review was completed.
04/10/2023 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
04/10/2023 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
11/07/2018 12:00 AM
Origination
Date on which the original version of this document was first made official.
01/09/2004 12:00 AM