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Article

3 min read

Your Ultimate Guide to North Carolina Payroll

US Payroll

Author

Gabriele Culot

Published

July 26, 2023

Last Update

June 28, 2024

Table of Contents

Paying unemployment insurance

Withholding personal income tax from your North Carolina employee

Paying your North Carolina workers’ compensation

Simplify US payroll tax compliance with Deel

Key takeaways
  1. North Carolina employees are responsible for managing payroll and other important HR tasks on behalf of their employers.
  2. Important factors to consider include unemployment insurance, personal income tax, and workers’ compensation, each of which must follow state-specific guidelines.
  3. Many companies trust Deel’s centralized platform to streamline payroll and compliance, ensuring all state-specific requirements are met.

Employers in North Carolina are responsible for meeting various payroll regulations. These requirements differ from one state to another. To begin, this guide serves as an introduction to what North Carolina employers can expect to withhold and pay from their employees’ wages — such as unemployment insurance, personal income tax, and workers' compensation. 

Paying unemployment insurance

Unemployment insurance, also known as UI, is one of several employer payroll taxes, also known as payroll withholding. It is grouped with well-known federal taxes such as Medicare and Social Security. In North Carolina, it is the employer's responsibility to withhold (and pay) the right amount of state taxes from the employee’s payroll.

Essentially, unemployment insurance is a government program that provides financial assistance to eligible individuals who have lost their jobs through no fault of their own and are actively seeking new employment.

Employers can manage unemployment insurance through the North Carolina online portal. If you need more information on UI in the state, you can visit the North Carolina Department of Commerce online.

Withholding personal income tax from your North Carolina employee

Personal income tax is another key tax to withhold from employees’ wages. Personal income tax, also known as individual income tax or state income tax, is calculated based on the income of North Carolina residents. 

Personal income tax is deducted from the employee’s wages and withheld by the employer, who can pay the state through North Carolina’s online portal. The same portal is also a useful resource for more information on personal income tax.

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Paying your North Carolina workers’ compensation

Workers' compensation is another cost to consider, serving as a form of insurance that provides financial and medical benefits to employees who suffer job-related injuries or illnesses. In North Carolina, paying workers’ compensation premiums is only compulsory when hiring three or more employees in the state.

When purchasing workers’ insurance, it’s important to verify that the premium complies with the state’s regulations for workers’ compensation.

In most instances, workers’ compensation is purchased through a qualified commercial carrier in the state. The North Carolina Industrial Commission offers a valuable resource that helps employers find qualified commercial carriers. 

Simplify US payroll tax compliance with Deel

At Deel, we are committed to providing valuable information on payroll taxes, compliance, and other state requirements for US and international businesses. While this guide is a valuable introduction to unemployment insurance, personal income tax, and workers’ compensation, there is much more to understand. 

Rather than figuring it out alone, many companies turn to Deel’s comprehensive solution for managing payroll. Our robust platform helps streamline the process and ensure full compliance. Ready to get started? Request a demo from Deel today!

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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