North Carolina Tax

For North Carolina residents, you specify the employee's status and exemptions.

Deltek Modification Date - 12/5/06

Enter the following field information for residents of North Carolina on the Withholding grid on the Payroll tab of the Employee Info Center:

Field Description
Status

Enter the status claimed by the employee for federal income tax purposes on Form W-4:

  • S — single

  • M — married

  • H — head of household

  • W — qualifying widow/widower

Exemptions Enter the total number of withholding allowances claimed by the employee on the North Carolina Employee’s Withholding Exemption Certificate, Form NC-4.
Other Exemptions North Carolina’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

Vision automatically computes the following variables.

Standard Deduction

The standard deduction is a table-based deduction that applies to all employees. The amount of the deduction depends on the employee’s filing status:

If the status is Then the deduction is
Single $3,000
Married $3,000
Head of household $4,400
Qualifying widow/widower $3,000

Allowance

The allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $2,500.

If the annual income equals or exceeds the following amounts for the employee’s filing status, it is determined by multiplying the number of exemptions by $2,000.

If the status is Then the deduction is
Single $60,000
Head of Household $80,000
Married $50,000
Qualifying Widow/Widower $50,000

How Vision Calculates Tax

To calculate an employee's North Carolina State tax, Vision does the following:

  1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.

  2. Subtracts the employee's standard deductions, allowance, and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine the taxable income.

  3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.

  4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.

  5. Rounds the final results of calculations to the nearest whole dollar.