A Guide to NC-3 Annual Withholding Reconciliation Form

NC-3, also known as the Annual Withholding Reconciliation form, is used to withhold and pay tax withheld in a calendar year. Just one-page long, this form is uncomplicated at first blush. Employers will need to provide personal information, like their address and Account ID, as well as the total tax withheld as reported for each period. Reported tax withheld is split between W-2 statements and 1099 statements, then added together and reported. In the process of completing this form, employers will also calculate overpayment, additional tax due, and interest, as well as informational return penalties. If you make a mistake or miscalculation, the NC-3X – the Amended Annual Withholding Reconciliation form – allows you to fix your calculations. Both the NC-3 and NC-3X are easily filed online through the North Carolina Department of Revenue website and portal.

As with most withholding reconciliation forms, these forms are not as simple as they appear. They require a lot of data from the previous calendar year, and several lines at the end of NC-3 require you to reference interest rate tables. If you don’t have a record-keeping or accounting system in place, you could easily spend hours finishing this. Advanced Micro Solutions can help you out.

 

Completing NC-3 with AMS

and AMS Payroll . Each software tool provides a different service, so it is important to choose the option that works best for you and your business.

Our Forms Filer Plus is a standard form filing software. It supports many federal forms and state-specific documents. Employers and accountants enter data directly onto a facsimile of the form and print directly from the software. This is a perfect option for filers who don’t need calculation and data storage support. Instead, quickly and easily fill out your required forms.

AMS Payroll is our semi-automated payroll software. In addition to printing checks and facilitating direct deposit processing, this tool automatically calculates federal, state, and local taxes, ensuring you perform the correct math every time. Plus, after you calculate withholding, the software will store the data for later use, making forms like the NC-3 easy and accessible. Whether you’re looking to upgrade your payroll system or just want an easier form completing and filing process, this is a great tool to use.

 

More From AMS

Both the Forms Filer Plus and AMS Payroll are modules in the AMS suite. Our products work modularly, which means our customers buy the required software, a W-2/1099 software filer, then select specific modules to built out a fully customized accounting product. Depending on your filing needs, be them quarterly, semiweekly, or state-specific, we have a product to help.

If you have questions about our Forms Filer Plus, AMS Payroll, or any of our other software products, please call our Sales and Information team at 800-536-1099. We know the NC-3 can be difficult, but finding a solution is easy with us.

 

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.