North Carolina recently released the 2018 version of Publication NC-30, the Income Tax Withholding Tables and Instructions for Employers. This publication provides instruction and requirements for employment- related tax information reporting, including W-2 and 1099 information.
Two important updates were made to the publication for 2018, which are as follows:
- Penalties were updated by statute (G.S. 105-236(a)(10)c) to require the department to assess a $50 penalty against an employer that fails to file an informational return with the North Carolina Department of Revenue. This penalty is effective for taxable years beginning on or after January 1, 2016.
- The Secretary may elect to waive penalties for NC-3 records filed after January 31, 2017, but will impose penalties for NC-3s due on January 31, 2018 if not timely filed.
- Session Law 2017-204 amends NC General Statute 104-251.2 to require Payment Settlement Entities to file a duplicate of any 1099-Ks that said entity is required to file with the IRS. Filing must be done electronically, and any report not timely filed is subject to a penalty of $1,000.
The remainder of the publication has undergone minor formatting changes, but is otherwise the same as its predecessor version.
To review this publication in full, please click on the link here.
About the Author
Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.More Content by Paul Ogawa