North Carolina Tax
For North Carolina residents, you specify the employee's status and exemptions.
Deltek Modification Date - 1/24/22
Enter the following field information for residents of North Carolina on the Withholding grid on the Payroll tab of the Employees hub:
Field | Description |
---|---|
Status |
Enter the status claimed by the employee for federal income tax purposes on Form W-4:
|
Exemptions | Enter the total number of withholding allowances claimed by the employee on the North Carolina Employee’s Withholding Exemption Certificate, Form NC-4. |
Other Exemptions | North Carolina’s tax calculations do not use the Other Exemptions field. |
Supplemental Wages | The flat supplemental withholding rate is at 5.09%. |
Automatically Calculated Variables
Vantagepoint automatically computes the following variables.
Standard Deduction
The standard deduction is a table-based deduction that applies to all employees. The amount of the deduction depends on the employee’s filing status:
If the status is | Then the deduction is |
---|---|
Single | $12,750 |
Married | $12,750 |
Head of household | $19,125 |
Surviving spouse | $12,750 |
Allowance
The allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $2,500.
How Vantagepoint Calculates Tax
To calculate an employee's North Carolina State tax, Vantagepoint does the following:
- Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
- Subtracts the employee's standard deductions, allowance, and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine the taxable income.
- Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
- Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.
- Rounds the final results of calculations to the nearest whole dollar.