Withholding Tax Forms and Instructions To ensure you are able to view and fill out forms, please save forms to your computer and use the latest. I want North Carolina income tax withheld from my monthly retirement benefit on the following basis.(You MUST complete Marital Status and Allowance below.). NC Retirement Systems can withhold only North Carolina income tax. We cannot withhold any other state's income tax from your monthly benefit. Short-term benefits paid to employees who had five or more years of maintained service as of August 12, 1989, are not subject to North Carolina income tax. PURPOSE - Complete Form NC-4, Employee's Withholding Allowance. Certificate, so that your employer can withhold the correct amount of. In which state should I file a claim if I live in North Carolina or another state? The easiest and most secure option to start, stop or change your state income tax withholding (SITW) is to use myPay.