What do I need to know about state withholding tax?
Residents of North Carolina are subject to North Carolina withholding on all wages, whether earned in North Carolina or in another state. (Exception: North Carolina withholding is not required if the other state in which the employee works, requires the employer to withhold income for that state).
A nonresident employee is subject to North Carolina withholding tax on any part of the income earned for services performed in North Carolina.
New employers are required to register for a withholding account. Click here to register online.
What forms do employees need to set up state withholding?