1107.1 - Procedure for Completing Federal and State Withholding Tax Forms

Introduction

Purpose

It is essential that the instructions for federal and state withholding tax forms are followed exactly as provided by the taxing agencies. Where forms are improperly completed or not submitted at all, Payroll Services will apply taxes according to rules imposed upon the employer by the respective agencies, typically withholding at the maximum rate.

Scope of Applicability

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

Procedure

Wherever possible, all payroll tax updates should be made via SelfService in ConnectCarolina. Available tax form updates online via SelfService include W-4 (Federal Employee’s Withholding Allowance Certificate) and NC-4 (North Carolina Employee’s Withholding Allowance Certificate). To complete SelfService tax updates:

1. Log in to ConnectCarolina.
2. On left side panel, click on “SelfService.” Then click on “W-4 and NC4 Tax Information.”
3. To make an update to your federal tax withholdings, fill out the section under the heading “W-4 Tax Data.” To update your state of North Carolina tax withholdings, fill out the section under the heading “NC-4 Tax Data.”
4. After updating the appropriate section(s), click the Submit button at the bottom of the page. Then click in box confirming agreement to the statement provided and click OK.

This completes the employee tax update(s) and sends them directly to the Payroll system. Employees who make tax updates via SelfService do not need to send the paper version of these forms to Payroll Services.

Exceptions

Exceptions to this procedure are employees who work outside of North Carolina, are declaring exemption from NC withholding taxes, or are in Nonresident Alien tax status. Employees working outside North Carolina please refer to Finance Procedure 1107.2 - Procedure for Payroll Reporting of Employees Who Work Outside of North Carolina.

1. Print out the tax withholding form needing update. For federal, it will be the current version Form W-4. Current version state tax withholding forms can be found on the Federation of Tax Administrators website.
2. Complete the designated form(s) according to the instructions on the form(s) / provided by the taxing authority.
3. Mail the completed form(s) to Payroll Services. Those who work or live in a state other than North Carolina should send the form to the attention of the Multistate Tax Coordinator.

Related Requirements

External Regulations and Consequences

• IRS Form W-4, Employee’s Withholding Allowance Certificate
• North Carolina Withholding Certificates NC-4, NC-4EZ, and NC-4 NRA

University Policies, Standards, and Procedures

• Finance Policy 1107 - Policy on Required Payroll Taxes
• Finance Procedure 1107.2 - University Of North Carolina At Chapel Hill Procedure for Payroll Reporting of Employees Who Work Outside of North Carolina

History

Revised:

• October 9, 2018
• September 8, 2009
• May 29, 2007
• July 28, 2005