Payroll Services (PAY)

PROCEDURE 7

Effective Date: 07/01/1996

Last Modified Date: 07/28/2005

Procedure Description

The Employee's Withholding Exemption Certificates (W-4 and NC-4) are used to indicate the number of personal exemptions (Federal and State), the employee's choice of Federal tax schedule, and the additional Federal withholding allowances or the additional Federal and/or State withholding allowance and schedule the employee wishes to claim. Read instructions carefully and follow them exactly.

Procedure Steps

Completing Forms W-4 and NC-4 for Payroll Services

PAY Appendix 6 includes links to the North Carolina and Federal forms and instructions.

1. Print or type the name and address clearly. Enter the Social Security Number exactly as it appears on the Social Security card. It is the employee's responsibility to supply the correct number. If an assigned number is not available, leave this information blank and submit the W-4 card with a copy of the receipt stating a Social Security Number has been applied for. Payroll Services will assign a dummy number to be used until the assigned number has been received.

   The address on the W-4 and NC-4 forms is the address used by Payroll Services for mailing W-2 forms. A change of address requires that the employee complete a new W-4 and NC-4 forms to reflect the new address. (See W-4 and NC-4 forms for additional information and instructions).

2. Sign and date the W-4 and NC-4 forms before sending them to Payroll Services.
   
   
3. Payroll Services must receive the W-4 and NC-4 forms for new employees before releasing a payroll payment.

Additional Withholding Allowances

Based on itemized deductions, an employee may claim withholding allowances in addition to the regular Federal withholding exemptions. These allowances are designed primarily for employees who anticipate having large itemized deductions for a taxable year and wish to have the resulting lower Federal income tax liability reflected in the amount of Federal taxes withheld from wages.

Additional Withholding

To increase the amount of withholding for Federal or State tax to an amount greater than that based on the number of exemptions claimed, the employee must complete and submit new W-4 and NC-4 forms, showing the specific additional dollar amount to be withheld each pay period in the appropriate blocks.

Additional amounts of withholding above the employee's current amount should first be achieved by reducing the exemptions claimed. That is, before requesting that an additional dollar amount be withheld for Federal and/or State taxes, the employee should make certain that the number of exemptions claimed is "0" so that the maximum scheduled withholding can be deducted.

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