Modified Business Tax Information & FAQs

Any transactions processed after the deadline will not be reflected on the W-2 statement. A corrected W-2 statement will need to be requested for these employees. Terminated employees may access your W-2 via the Payroll Online Service Center if they have an account created within 8 weeks of their last pay. Otherwise, a duplicate W-2 may be requested from Central Payroll Bureau. GUIDE TO COMPLETING THE W-4 & MW507 – This guide address common questions and errors employee’s have when completing the W-4 and MW507 forms. Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on a Form W-4, (Employee’s Withholding Allowance Certificate).

The tax rate for general business prior to July 1, 2009 was 0.63% with no threshold. The calendar year 2022 W-2 tax form will be distributed electronically in January 2023. Those employees who authorized web delivery of their tax forms can expect to access their W-2s sooner than those who opted to receive a hard copy. A W-2 tax form shows important information about the income you’ve earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year. All employers are required to report new employees to their state’s New Hire Directory within 20 days of the employee’s first day on the payroll and provide all of the necessary information.

General Tax Information

If you e-file using TurboTax then your W-2 information is sent along electronically with your tax return. However, if you are filing your tax return by mail then you need to attach a copy on the front of your return. If you received other types of compensation or reductions to your taxable income, these will be reported in the Box 12 series.

The requirements for depositing, as explained in Publication 15, vary based on your business and the amount you withhold. You must deposit federal income tax and Additional Medicare Tax withheld and both the employer and employee social security and Medicare taxes. You also must report on the taxes you deposit, as well as report wages, tips and other compensation paid to an employee. Please complete the online form when requested and return it as soon as possible so Payroll Services can determine your correct tax withholding. Before completing the 2020 Form W-4, please read the instructions that are included with the form.

State and Local Tax Forms

Determine the amount of withholding for social security and Medicare taxes by multiplying each payment by the employee tax rate. An employer generally must withhold social security and Medicare taxes from employees’ wages and pay the employer share of these taxes. Understand the various types of taxes you need to deposit and report such as, federal income tax, social security and Medicare taxes and Federal Unemployment Tax.

You will start receiving Employer And Tax Information returns from the Department of Taxation. They will be sent to you at the same address you have registered with the Employment Security Division. If you would like your Modified Business Tax returns to be sent to a different address you must notify the Department of Taxation by phone or in writing. Provides a one-stop shop for tax assistance, including information about income tax, payroll tax, sales & use tax, and other taxes and fees for businesses. Every retail or wholesale merchant in the business of selling, renting or leasing taxable tangible personal property in North Carolina is required to obtain a Certificate of Registration unless specifically exempt by statute. Once registered, you will receive information from the Department of Revenue on sales and use tax reporting and remittance requirements.

California Department of Tax and Fee Administration

The Workers’ Compensation Act is administered via the North Carolina Industrial Commission. It requires any employer with three or more employees provide workers’ compensation coverage. Any sole proprietor or partner of a business whose employees are eligible for benefits may also be covered as an employee. To obtain workers’ compensation insurance, contact your insurance agent. “X” forms are used to report adjustments to employment taxes and to claim refunds of overpaid employment taxes. Employees may choose to review their federal tax elections when they receive a large tax refund or owe taxes for the previous tax year.