 |
|
 |
|
| North Carolina |
|
2008 Minimum Wage Change
Effective July 24, 2008, the minimum wage rate for North Carolina increased from $6.15 to $6.55 with a tip credit changing from $3.72 to $4.42.
2008 Withholding Changes
Effective 1/1/2008, North Carolina issued new withholding tables. For more information, please link to the following:
http://www.dor.state.nc.us/downloads/nc30.pdf
http://www.dor.state.nc.us/downloads/nc-4.pdf
Are Severance Payments Considered Exempt?
The first $35,000 of severance wages paid to an employee (whether paid in one year or over several years) as a result of the employee’s permanent, involuntary termination from employment through no fault of the employee is exempt from withholding. The key words are “exempt from withholding.” No withholding is allowed, but the severance payment is still considered a part of taxable wages. It is up to the employee to do the following:
Deduct up to $35,000 of any severance wages you received as a result of your permanent involuntary termination from employment through no fault of your own.
The severance pay that qualifies for this deduction is limited to the amount of severance pay included in your federal taxable income or $35,000, whichever is less.
Enter this deduction on line 44 on page 3 of your Form D-400. This amount will become part of the total line 9 amount on page 1 of your Form D-400. Form D-400 is the individual tax return of the employee.
For more information, please link to the following:
Employer handbook: http://www.dor.state.nc.us/downloads/NC-30_1-7-03.pdf
Individual income taxes: http://www.dor.state.nc.us/taxes/individual/severance.html |
|
|
|
|
|
|