North Carolina Updates eNC3 FAQs

November 30, 2018 Tom Hospod

The North Carolina Department of Revenue has updated its eNC3 Frequently Asked Questions.

The following information has been added:

  • Filers must submit NC-3 electronically. A new $200 penalty will apply for the 2018 Tax Year for failure to file in the format prescribed by NC DOR on any NC-3 that is not filed electronically or does not include all required statements with the electronic submission.
  • NC-3 must be filed annually on or before January 31, unless an employer goes out of business or stops paying wages during the year – in which case, the taxpayer must file NC-3 within thirty days of the last payment of wages.
  • The penalty for late NC-3s is $50 per day up to a maximum of $1,000.
  • A filer may request a penalty waiver by submitting Form NC-5501. Form NC-5501 will be available on the Department’s website in early 2019 and will replace Form NC-5500. If a filer is unable to access its withholding account, a Form NC-5501 can be submitted with the paper NC-3 to request a waiver of the penalty for failure to file electronically.
  • Filers are now required to submit NC-3X including W-2c and amended 1099 statements electronically.
  • There are changes to the file format specifications that may be reviewed here.
  • Filers may now use an Excel __ template  to create a W-2 .txt file that meets the file format specifications.  Once completed, the template has a button to create a .txt file that can be submitted via the Web File Upload option. This option is only available for Form W2. Excel files cannot be uploaded in the application.  If filers are unable to create files that meet the specifications, they can use the Manual Entry option.

About the Author

Tom Hospod

Tom Hospod is a member of the Tax Research Team for the Direct Tax division at Sovos Compliance, where his main areas of focus are Tax Withholding and Automatic Exchange of Information (AEOI). Prior to Sovos, Tom worked as a legislative aide in the Massachusetts House of Representatives. He also has experience in securities law—focusing on broker-dealer disputes and representing clients in FINRA arbitration. Tom is a member of the Massachusetts Bar, earned his B.A. from Boston College and his J.D. from the University of Miami.

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