All NC employees must complete a new NC-4 or NC-4EZ for 2014. This is because the legislature changed quite a few income tax rules and effective January 1, 2014 they lowered tax rates to a flat 5.8%. Some will owe more tax, some will owe less tax and some will owe about the same amount.
NC has more information and the forms here:
Please start on the NC-4 Allowance Worksheet, Part I. Go to the section with your filing status and answer the questions. Notice the instructions following the questions. For example, for Married Filing Jointly the instructions after question 4 read:
“If you answered “No” to all of the above, STOP HERE and enter ZERO (0) as total allowances on Form NC-4, Line 1.”
Notice that if you answered “NO” to all of the 4 questions, you will enter ZERO (0) total allowances and you can stop. No need to complete the rest of the worksheets. Most of the NC-4s I have calculated have allowed me to stop here and I have calculated ZERO allowances. The instructions continue:
“If you answered “Yes” to any of the above, you may choose to go to Page 2, Part II to determine if you qualify for additional allowances. Otherwise, enter ZERO (0) on Form NC-4, Line 1.”
This is where it gets interesting. If you are a current client, please call or send an email if you need assistance. For most of you there will be no charge.