ACH Credit Frequently Asked Questions
ACH Credit Payment Option
The ACH Credit payment option is only available to businesses for the following tax types:
- Alcoholic beverages
- Combined general rate sales and use (previously utility, liquor, gas, and other)
- Corporate estimated
- Insurance premium
- Motor fuels
- Sales and use
- Severance
- Streamlined sales
- Tobacco products (cigarette, other tobacco products)
- Withholding
The ACH Credit payment method allows you to initiate the transfer funds from your financial institution to credit the NCDOR bank account. You should contact your financial institution to confirm they offer ACH credit origination services and any associated costs. To enroll for ACH credit, complete the ACH Credit Payment Authorization Agreement (EFT-100C) providing the necessary information. You will receive a confirmation letter once you’re approved along with the documentation necessary to make ACH Credit transfers, including the Department's banking information.
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:
- Taxpayer identification number
- Tax type code
- Tax period end date
- Payment amount type
- Amount of payment
Refer to ACH Credit Instructions and Guidelines for required formatting information. You should contact your financial institution at least one business day prior to the due date and instruct them to initiate the transfer to the NCDOR bank account for the amount of the tax payment. You should ensure that the financial institution originating the transaction does so in sufficient time for the payment to be deposited to the NCDOR bank account on or before the appropriate due date of the tax payment.
- Compliance with procedures: to avoid posting delays or posting errors, the ACH credit format for NCDOR must be followed closely. Failure to provide a properly formatted ACH addenda record, invalid data, or failure to consistently transmit error-free payments, could result in posting delays or posting errors.
If any of your information changes after submitting your initial EFT-100C, such as contact person or contact information, a new EFT-100C should be completed, signed, and submitted with the updated information. Normally, changes require 2-3 days to be processed before becoming effective.
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 NCDOR 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
- 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 financial institutions, and/or the Federal Reserve System.
Paying by ACH Credit does not change the filing requirements or due dates for tax returns that are required to be filed. You should understand the filing requirements and be sure the tax return is received by the due date. If the return is not received timely, your account will become delinquent and you will be subject to additional penalties and interest. Most business tax returns can be filed using our website.
The list below shows returns that are NOT required to be filed when payment is submitted by ACH Credit:
Withholding Tax
- NC-5P NC Income Tax Withholding Payment Voucher
- NC-5 Employer's Report of NC Income Tax Withheld
You will continue to file Forms NC-3 Withholding Reconciliation of North Carolina Income Tax Withheld. Semi-weekly filers must also file Form NC-5Q, Quarterly Income Tax Withholding Return. Liabilities discovered as a result of completing the NC-5Q should be remitted by check accompanied by a NC-5P.
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 company 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.
If you have questions regarding the ACH Credit payment method or need assistance with enrolling for that method, you may contact the EFT Helpline at 1-877-308-9103 Option 2, Option 1, then Option 1 again.
If you need assistance with our online bank draft and card payment methods, you may contact 1-877-308-9103 and select the option for assistance with online filing and payment services.
Assistance is available between the hours of 8:00 a.m. to 5:00 p.m. ET, Monday through Friday excluding holidays.