Who is this post for?
This post is for North Carolina small businesses, accountants and CPA firms wanting to create 1099 e-File submissions that comply with eNC3 flat text file format specification and then upload through eNC3 web file upload portal (https://file.dor.nc.gov/eNC3Web) . If you are a contractor / vendor with North Carolina source income looking for your 1099 form, then this page is not for you.
What has changed?
For Failure to file North Carolina 1099 returns by the due date, a taxpayer will be assessed a penalty of $50 per day, up to a maximum of $1000. The due date is currently January 31 of the succeeding year.
For failure to file 1099 statements electronically in the eNC3 file format (for 1099s), a taxpayer will be assessed a penalty of $200. This means all returns have to be sent electronically. Taxpayers may request a waiver of a 1099 return penalty by submitting Form NC-5501.
What do you need in order to file NC 1099s with eNC3?
- You need to register with eNC3 Online Portal.
- Internet access.
- A web browser. Most browsers work except for Microsoft Edge (the new browser that ships with Windows 10).
- Software to create flat text (.TXT) files containing 1099 information (this post utilizes the W2 Mate W2 / 1099 software).
- Optional: a simple text editor such as notepad, in case you want to open the 1099 flat .TXT file and review the data before uploading to eNC3.
Step by Step Instructions for E-Filing 1099s with NC eNC3 Online Portal
Step #1: Open W2 Mate software. If you do not have W2 Mate installed, you can download a free demo or buy the full product at https://www.realtaxtools.com/W2-Mate.html .
Step #2: Either manually enter or import your 1099 data inside W2 Mate. You can import your data from many sources including spreadsheets (Excel, Google Sheets, Office 365, Apache OpenOffice Calc), Intuit QuickBooks (desktop / online), Sage (50, 100, 300, Intacct), Microsoft Dynamics, NetSuite and many more.
Step #3: Review, check and double check your 1099 data. It’s much easier to catch a 1099 reporting problem before filing with the agency than having to file corrections. The 2 most important fields you need to check are the recipient TIN (Tax ID such as SSN or EIN) and the money amount.
Step #4: Generate NC 1099 E-File Submission. From the top menu inside W2 Mate, select “E-Filing > 1099-MISC Forms”. W2 Mate will show a message asking if you want to create a file for upload to the IRS FIRE System or direct upload to North Carolina. Select the option for NC direct upload. Make sure the file name ends with .txt (such as “my-company-name-nc-efile.txt”). W2 Mate will create the flat text file and show the list of 1099 recipients. Make sure to review this information carefully.
Step #5: Test the flat text file through eNC3.
Go online to the “eNC3 – Web File Upload” page.
Click the “Test 2018 File Specifications” link.
You will get to a page titled “eNC3 and Information Reporting”. Now you need click a blue button at the bottom of the page that says “Test 2018 File Formats”.
Select the tax year from the drop-down menu.
Click “Upload 1099 Files”.
Once the file upload is complete, click “Test Files” button.
Review the test results and fix any errors by updating the data inside W2 Mate and creating a new file for testing. The most common error is entering a wrong NC Withholding Account Number on the 1099 forms.
Step #6: Upload the e-File submission to eNC3. Once the file passes the testing in step #5 above you can go ahead and upload to the “production” area of the website. For this step you will need to go to the “Enter the eNC3 Application” page and login with your user name and password. You will follow same steps as in testing, but this will be the actual submission. For questions about uploading flat text file to eNC3 application you can call 1-877-252-3052.
Step #7: Save the flat text file in a safe place for future reference. I would backup the file on a flash drive or CD media and store in a safe place for future reference. If you have a zip archive application such as WinZip, you can compress and password protect the file for extra security.
To learn more about North Carolina information return filing and to download 1099 e-File software visit: