Tax season is coming. Here's what you need to know.
Each year it's important to log in to your ORBIT account to review and make any beneficiary and tax withholding changes that you deem necessary. This year it's especially important to review your tax withholding preferences. Read on to find out what you need to know to wrap up 2018 and prepare for the year ahead.
Use ORBIT to access your 1099 or W-2 tax forms as early as January 18, 2019. Otherwise, paper versions of these documents will be mailed out to the address we have on file for you by Thursday, January 31, 2019. If you decide to wait for your paper tax form, please be sure to allow 7-10 business days to receive the form by mail.
Tax withholding defaults and rates are changing in 2019. Please update your preferences.
State Taxes: Unless you specify a monthly withholding rate or amount for state taxes, your pension account will default to the rate of "single" with zero allowances. This means that more money may be deducted from your benefit payment each month if you do not log in to ORBIT and designate your withholding preferences. If you have already designated a withholding preference or are exempt from paying state taxes, no action is required.
Federal Taxes: Unless you specify a monthly withholding rate or amount for federal taxes, your pension account will default to the rate of "married" with three allowances. If you have already designated a withholding preference, no action is required.
The IRS is recommending that retirees conduct a "paycheck checkup" to make sure they are paying enough tax during the year by using the withholding calculator located on the IRS website. Though primarily designed for employees who receive wages, this online tool can also help those who receive pension and annuity payments on a regular schedule.
Set your tax withholding preferences in ORBIT today!
You can log in to ORBIT at any time to start, change or stop the federal and/or North Carolina state tax withheld from your benefit payment. The sooner you review your withholding settings, the sooner you can feel confident that your tax withholding preferences are being honored.
You can volunteer to help with hurricane recovery efforts without affecting your retirement benefits
There has been an outpouring of support for everyone impacted by Hurricane Florence, and we've received questions about how our retirees can help without violating Return to Work Laws.
Return to Work Laws govern how retirees can work for a government agency that is participating in the North Carolina Retirement System. Return to Work Laws apply differently to members of the Teachers' and State Employees' Retirement System (TSERS) and the Local Governmental Employees' Retirement System (LGERS). If you violate these laws, you could be subject to financial penalties and/or possible loss of retirement benefits and health coverage, so it's important for you to know how these laws apply to you.
If you're thinking about volunteering, here's what you need to know.