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North Carolina Taxes - Employee Setup

North Carolina has three withholding certificates, a full version called the NC-4, a shorter version called the NC-EZ, and a NC-NRA for non-resident alien employees.

The major differences between the NC-4 and NC-EZ are:

  • The NC-4 requires more tax information and calculations than the NC-EZ.

  • The NC-4 may result in more precise withholding as a result of the above.

A resident employee may choose to use either the NC-4 or the NC-EZ to determine their allowance total. North Carolina’s FAQ page can help you determine which form may be best to use. 

The North Carolina Taxes section can be filled out by employees once the appropriate form and allowances have been determined. However, if the employee chooses “Do not Withhold”* or elects for more than 10 allowances, please review this article here as there are additional requirements.

  • “Do not Withhold” is also known as “Exempt from withholding” as found on the NC-EZ and NC-NRA.

Gusto will notify you via a Sticky on your Admin dashboard if an employee falls into one of these scenarios. 

Learn how to find a copy of your employee’s W-4s here