Our View: A taxing situation
Following tax law changes enacted by the General Assembly, all North Carolina employees will have to update their tax information by Dec. 31. They will do so by providing a new withholding allowance certificate to their employers.
What may seem like filling out a routine form takes on more importance with the passage of the Tax Simplification and Reduction Act. While that act reduces personal income to a flat 5.8 percent in 2014 -- eliminating a former three-tiered system -- and increases standard deductions, taxpayers may also no longer claim a personal exemption for themselves, their spouse, children or other qualifying dependents. And taxpayers who enter an incorrect number of allowances on the withholding form could find they owe unexpected additional taxes when they file a 2014 return. That's what makes completing a new withholding allowance certificate so vital.
Doing nothing when it comes to completing a new form isn't an option for most of us. If no new form is submitted by the end of the year, an employee's status defaults to classified as single with no allowances -- and the maximum amount allowable will be withheld from each paycheck.
Any change can be complicated, but that's especially so in the world of taxes. Employees who have questions can visit http://www.dornc.com/press/2013/nc4requirement.html. Employers can call (877) 252-4487.