Electronic Services for Businesses
ACH Credit Information

The North Carolina Department of Revenue (NCDOR) accepts three methods of electronic payment. The Department's online filing and payment web applications offer bank draft and credit/debit card payment options. The third payment option is ACH Credit.

 

What is the ACH Credit Option?

The ACH Credit option is only available to businesses for the following tax types:

  • Withholding Tax
  • Corporate Estimated Tax
  • Utility Franchise Tax
  • Utility & Liquor Sales & Use Tax
  • Piped Natural Gas Tax
  • Alcoholic Beverage Taxes
  • Sales & Use Tax–Semimonthly filers only
  • Machinery, Equipment, & Manufacturing Fuel
  • Streamlined Sales Tax
  • Tobacco Products Taxes–Cigarette and Other Tobacco Products
  • Motor Fuels Taxes–excluding Highway Use Tax
  • Insurance Premium Taxes

The ACH Credit method allows taxpayers to transfer funds by instructing their financial institution to debit their account and credit the Department’s bank account. The Department of Revenue will allow the use of the ACH Credit method with prior approval.  To obtain permission to use this method, taxpayers must submit an ACH Credit Payment Authorization Agreement (EFT-100C) providing the necessary information.  Each request will be reviewed on a case-by-case basis.  After registering with the Department, an Information Booklet containing documentation necessary to make ACH Credit transfers, including the Department's banking information, will be sent.

Taxpayers are urged to contact their financial institution to confirm they offer ACH Credit origination services in the required format.  Taxpayers are responsible for the cost of ACH Credit transactions. 

All ACH Credit transactions must utilize the NACHA CCD+ (Cash Concentration or Disbursement Plus) Format with the TXP Banking Convention addenda record.  The TXP Banking Convention addenda record requires the following information:

  1. Taxpayer identification number
  2. Tax type code
  3. Tax period end date
  4. Payment amount type
  5. Amount of payment

Taxpayers must contact their financial institution at least one business day prior to the due date and instruct them to initiate the transfer to the Department's bank account for the amount of the tax payment.  The taxpayer must ensure that the financial institution originating the transaction does so in sufficient time for the payment to be deposited to the Department's account on or before the appropriate due date of the tax payment.  Taxpayers are encouraged to make arrangements with their financial institutions to initiate pre-notification (prenote) transactions at least ten (10) days before the effective due date of the first payment to detect any format errors before live dollar entries are sent through the ACH network.

The Department assumes no responsibility for a tax payment made under the ACH Credit method until and unless the payment has been credited to the Department's designated account with its financial institution.

If any of your information changes after submitting your initial EFT-100, such as contact person or contact information, a new EFT-100 should be completed, signed, and submitted with the updated information.  Normally, changes require 2-3 days to be processed before becoming effective.

^top

For the ACH Credit option, how do I handle holidays and weekends?

Holidays and weekends may require adjustments to the date you request your payment to be transmitted.  The tax payment must be initiated so that the amount due settles into the Department’s bank account on or before the due date of the payment under the appropriate Revenue Law.  . If a tax due date falls on a Saturday, Sunday, State observed holiday, or financial institution holiday, the deposit by electronic funds transfer is required on or before the next banking day. You will need to contact your financial institution to determine how this should be handled.  Below is a calendar for holidays that you may need to consider.

Legal Holidays

  • New Year’s Day
  • Martin Luther King, Jr.’s Birthday
  • President’s Day
  • Good Friday
  • Memorial Day
  • Independence Day
  • Labor Day
  • Columbus Day
  • Veteran’s Day
  • Thanksgiving
  • Christmas

The holidays listed above are observed by the State of North Carolina, North Carolina Banks, and/or by the Federal Reserve System.

^top

If I choose ACH Credit do I need to file a tax return?

Paying by ACH Credit does not change the filing requirements or due dates for tax returns that are required to be filed.  The list below show all the returns that are required to be filed and each form name is a link to the form itself.  Note: If you are making an ACH Credit payment that requires a return to be filed and the return is not submitted, your account will become delinquent and you will be subject to additional penalties and interest.

Returns required to be filed:

Sales & Use Tax
  • E-500 – Sales & Use Tax Return
  • E-500J – Machinery, Equipment, and Fuel Tax Return
Utility & Liquor Sales & Use Tax
  • E-500E – Utility & Liquor Sales & Use Tax Return
Utilities Franchise Tax
  • CD-310 Utilities Franchise Tax Return Electric Companies
  • CD-318 Utilities Franchise Tax Return Water & Sewer Companies
Piped Natural Gas
  • CD-312 Excise Tax Return Piped Natural Gas
Alcoholic Beverage Tax
  • B-C-775 – Spirituous Liquor Return by ABC Boards
  • B-C-786 – Fortified & Unfortified Wine Excise Tax Return Wineries and Wine Shipper Permittees
  • B-C-784 – Fortified & Unfortified Wine Excise Tax Return
  • B-C-710 – Beer Excise Tax Return
Tobacco Products Tax
  • B-A-5 – Monthly Return of Resident Cigarette Distributor
  • B-A-6 – Monthly Return of Nonresident Cigarette Distributor
  • B-A-101 – Monthly Other Tobacco Products Excise Tax Return
Motor Fuels Tax
  • Gas-1202 – Motor Fuels Supplier Return
  • Gas-1252 – Alternative Fuels Provider Return
Insurance Premium Tax
  1. IB-33 – Summary of Insurance Premium Tax Filing Return
  2. IB-34 – Installment Payments Return – April 15th
  3. IB-35 – Installment Payments Return – June 15th
  4. IB-36 – Installment Payments Return – October 15th
  5. IB-43 – Self-Insured Workers’ Compensation Premium Tax Return
  6. IB-44 – Installment Payments Return – April 15th
  7. IB-45 – Installment Payments Return – June 15th
  8. IB-46 – Installment Payments Return – October 15th
  9. IB-53 – Gross Premium Tax Return Self-Insured Workers’ Comp
  10. IB-54 – Installment Payments Return – April 15th
  11. IB-55 – Installment Payments Return – June 15th
  12. IB-56 – Installment Payments Return – October 15th
  13. IB-63 – Gross Premium Tax Return HMO
  14. IB-64 – Installment Payments Return – April 15th
  15. IB-65 – Installment Payments Return – June 15th
  16. IB-66 – Installment Payments Return October 15th
  17. IB-73 – Gross Premium Tax Return Hospital or Dental Service
  18. IB-74 – Installment Payments Return – April 15th
  19. IB-75 – Installment Payments Return – June 15th
  20. IB-76 – Installment Payments Return – October 15th
  21. IB-83 – Gross Premium Tax Return Risk Purchasing Group
Withholding Tax
  • NC-3 – Annual Withholding Reconciliation (filed by Quarterly and Semi-Weekly filers)
  • NC-3M – Annual Withholding Reconciliation –Monthly
  • NC-5Q – Quarterly Income Tax Withholding Return (filed by Semi-Weekly filers only)
Corporate Tax
  • CD-401S - S Corporation Tax Return 
  • CD-405 - C Corporation Tax Return  

Note: Extensions, CD-419 and tax liabilities due on the final return for a Corporation, CD-V or CD-V Amended may be paid using our website.

^top
 

Who is required to pay electronically?

The North Carolina General Statute 105-241 (b) permits the Secretary of Revenue to require certain tax payments to be remitted electronically. 

The Department will determine whether a taxpayer is subject to the electronic payment requirement by reviewing tax payment histories for a twelve consecutive month period on a tax-by-tax basis.  As such, a company may be subject to the electronic payment requirement for one tax type, but may not be liable to make payments for another.

If selected for the electronic payment requirement, taxpayers will be notified at the last address of record at least sixty (60) days prior to the first day of the month in which a payment is due.  The notification will contain information about the electronic payment methods accepted by the Department.

Once selected to make electronic payments for a particular tax type, taxpayers are required to make the electronic payments (regardless of the amount) for a minimum of one year or until released from that obligation by the Department.   

Taxpayers whose average payments fall below the threshold will be notified that they are no longer required to pay electronically thirty (30) days prior to the due date of the first non-electronic payment.  However, a business may continue making electronic payments on a voluntary basis.

Effective January 1, 2000 a corporation that is required under the federal code to pay its federal-estimated corporate income tax by electronic funds transfer must pay its State-estimated tax by electronic funds transfer.  These corporations may not be identifiable by the Department for notification.

^top

Can I pay electronically on a voluntary basis?

Any taxpayer that would like to make electronic payments for the tax types available on our website and those available under the ACH Credit payment option are welcome to do so.

^top

Do you need assistance in choosing a payment option?

If you have questions regarding the ACH Credit payment method or need assistance in registering with the Department for that method, you may contact the EFT Help Line at 1-877-308-9103 Option 2 and then Option 1.

If you need assistance with our online bank draft and card payment methods, you may contact the Electronic Services Help Line at 1-877-308-9103 and select the option for assistance with our online filing and payment services.

Assistance is available between the hours of 8:00 a.m. to 5:00 p.m. EST, Monday through Friday excluding holidays.