North Carolina Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

North Carolina collects withholding for state income tax, with a flat tax rate of 5.35% after exemptions and standard deduction. Calculations did not change in 2021. NC withholding formulas have changed 12 times in the past 31 years, including a major simplification (and removal of progressive rates) in 2014.

HINT-- Turtle Creek Software provides free annual updates for US federal and North Carolina tax withholding rates.

North Carolina State Withholding Instructions

To enter state and federal withholding tax info for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter a Tax Package into the Tax Package field, depending on the employees average wages as compared to the state cutoff (see note below).
  5. Enter the employee's marital status into the Marital Status field.
  6. Enter the number of federal dependents into the Federal Exemptions field.
  7. Enter the number of North Carolina state dependents into the State Exemptions field.
  8. Click OK.

North Carolina State Unemployment Tax Instructions

In 2021, North Carolina state unemployment insurance tax is based on the first $26,000 in wages for each employee (the cutoff is up $800 from the previous year). The rate for a new company is 1.2%. After two years the SUTA rate is adjusted to between 0% and 6.84%, based on payroll, tax paid, timeliness of payments and UI benefits charged against the employer account.

To enter your North Carolina SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the North Carolina SUTA tax in the list, and double-click on it. HINT: If you don't see N Carolina SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter your percentage rate into the field to the right of Calculation method.
  4. Enter the current tax cutoff amount into the dollar field to the right of First Adjustment.

North Carolina Marital Status

Enter the following choices into the Marital Status field for each employee account:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

North Carolina Tax Contacts

Payroll Tax website

Payroll Tax Office-- 919 733-4626
SUTA-- 919 733-3991

North Carolina Department of Revenue
Revenue Building, Hillsborough & Salisbury
Raleigh NC 27640

Official State Lawn Ornament

Gerrymandered Congressional district line.