North Carolina’s All-in-One Payroll Solution

Manage North Carolina's Requirements for Withholding and Filings for small, enterprise and exempt organizations/businesses with PayWow.

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North Carolina State Payroll Tax Information

PayWow equips your business with the latest resources on state withholding and filings.

North Carolina Withholding Requirements

As an Employer in the state of North Carolina, you need to register your organization with NCDOR (North Carolina Department of Revenue) by completing Form NC-BR, Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge. You need to complete registration to pay and report employment taxes.

To withhold for each of your employees, you need NC-4, North Carolina Employee’s Withholding Allowance Certificate for each of the employee. This form is also available as NC-4 EZ, Employee’s Withholding Allowance Certificate (easy version) and NC-4 NRA, Non-resident Alien Employee’s Withholding Allowance Certificate.

North Carolina withholding calculations and deposits for your organization are automatically done by PayWow during each payroll. Your state filings will also be taken care within due dates.

North Carolina withholding requirements and calculations is automatically done by PayWow and deposits are done on-time.

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State Unemployment Insurance (SUI)

The State Unemployment Insurance (SUI) program provides compensation to eligible workers who have lost their jobs through no fault of their own. The Department of Commerce: Division of Employment Security is responsible for SUI for the state of North Carolina.

North Carolina Taxable Wage Base:

The taxable wage base for 2019 is $24,300.00

North Carolina Employer Contribution Rate:

If you are a new employer, your SUI rate would be 1%.

If you are an existing employer, the employer's benefit reserve ratio percentage is 0.68 times the employer's reserve ratio found on the Annual Notice of Contribution Rate for your business. It would be between the minimum rate for SUI 0.06% and the maximum rate for SUI 5.76%

As an employer, you are responsible for state unemployment taxes and shall not deduct from your employees' wages.

PayWow automatically deposits and files return for the State Unemployment Insurance for North Carolina of your business. This would offer you a credit of 5.3% for payment for FUTA (Federal Unemployment Tax Act).

Employer’s Quarterly Tax and Wage Report - Form NCUI 101

In North Carolina, employers are required to file the quarterly tax and wage report on or before the last day of the month following the calendar quarter.

Quarter Reporting Period The Due Date will be on
1 January - March April 30th
2 April - June July 31st
3 July - September October 31st
4 October - December January 31st

PayWow automatically calculates the State Unemployment Insurance for North Carolina. The withholding amount will be deposited on-time. Also, quarterly wage reporting will be filed at the end of the quarter so you don’t have to worry about it!

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State Labor Laws

Minimum Wage Rate:

To be an employer at North Carolina, you need to offer a minimum wage of $7.25 per hour which is equivalent to the federal minimum.

If you are an employer with 'tipped employees', you need to pay at least $2.13 hourly cash wage with the record of tips that would compensate the minimum wage of $7.25 per hour. If the tips don't add up to the minimum wage, you need to pay the difference.

With PayWow, whether you have tipped or non-tipped employees, the paycheck calculations would automatically adjust for the minimum wage.

PayWow will easily adjust minimum wage, and tips for each of your employees and simplify the payroll process.

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New Hire Reporting

If you are an employer in North Carolina, you need to report the newly hired and re-hired employees in North Carolina to the North Carolina Directory of New Hires within 20 days of hiring the employees.

Details Required to Complete New Hire Report:

To complete the New Hire Report of each of your employee, you would include:

Employer Details:

Employer Name, Address, State Employer Identification Number(Unemployment Insurance Number), Federal Employer Identification Number (FEIN)

Employee Details:

Employee Name, Address, Social Security Number, Date of Hire, Date of Birth (Optional)

Uses of New Hire Report:

The completed new hire report for each of your employees and of other employees in North Carolina will be used for:

  • Establishing and enforcing child support orders
  • Detecting Unemployment Benefits overpayments and fraud
  • Detect Workers' Compensation overpayments and fraud

Penalties:

You would face penalties for failing to file New Hire Reports:

$25 for failure to file for one new hired employee; and $500 if a conspiracy is discovered between you and an employee for not supplying the required information or supplying false or incomplete information. You can choose PayWow to report a new hired employee to North Carolina and receive both your copy and the employee's copy.

PayWow will automatically report the new hired employees to the state, and also send the required copies to both the employer and employees.

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Remit Withholding for Child Support

As an employer, you will receive a withholding notice from the state agencies asking you to withhold for child support from any of your employee's wages. Once you remit the withholding to the state agencies, the amount goes to the custodial parent.

As an employer, you may sign up for a bank draft by submitting a registration form to the NC Child Support Centralized Collections Operation by US mail or fax:

NC Child Support Centralized Collections Operation
P. O. Box 900020
Raleigh, NC 27675-9020
Fax: 919-787-6055

You can request a form by calling customer service(for bank draft inquiries only: 1-877-361-5437) or directly download it from https://nc.smartchildsupport.com/

With PayWow, you can withhold for garnishments and issue as bank draft to the state agency.

Remit Withholding for Child Support garnishments payments will be automatically calculated and handled by PayWow.

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North Carolina State Tax Forms

Required State Forms of North Carolina

DOR: Department of Revenue DES: Division of Employment Security
North Carolina Withholding Return
Form NC-5 (Quarterly Return and Payment of withholding less than $2,000)
NCUI 101 - Employer's Quarterly Tax and Wage Report with NCUI 101 b as continuation sheet for a report of employee's wages
North Carolina Quarterly Income Tax Withholding Return
Form NC-5Q (Reconciles the tax paid and the tax withheld (of $2,000 or more) for the quarter)
Form NC-5P - Withholding Payment Voucher
Other Forms
Form W-2 - Wage and Tax Statements
Form NC-3 - Annual Withholding Reconciliation

All the required state forms of North Carolina will be automatically filed by PayWow along with the federal forms on-time without any trouble.

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Form NC-5Q - Quarterly Income Tax Withholding Return

The Form NC-5Q, Quarterly Income Tax Withholding Return, is used by semi weekly depositors in North Carolina to reconcile the state tax paid for the quarter with the tax withheld for the quarter.

Even if you didn’t have the payroll during the quarter, the quarterly tax return must be filed.

Form NC-5Q is not required to be filed by monthly and quarterly depositors. If the tax withheld exceeds the tax paid, the additional tax and interest should be paid.

You are not required to send payment with Form NC-5Q. Use Form NC-5PX for additional payment. If you paid more than the original amount for the quarter, the State of North Carolina will refund the amount to you

Form NC-3 - Annual Withholding Reconciliation

Form NC-3, Annual Withholding Reconciliation should be filed electronically once in a year by monthly, quarterly and semi weekly depositors to report annual withholdings of the year.

PayWow uses ACH credit method so the following returns are needed to be filed.

  • Form NC-5, Monthly/Quarterly Return and Payment of withholding less than $2000
  • Form NC-5P, Withholding Payment Voucher

Form NC-5Q Filing Deadline

This form must be filed each quarter on or before the last day of the calendar month following the close of the quarter.

First Quarter

January – March

First Quarter

Second Quarter

April – June

Second Quarter

Third Quarter

July – September

Third Quarter

Fourth Quarter

October – December

Fourth Quarter
  • If due date falls on a weekend or holiday, then the deadline is automatically extended to the next business day.

Form NC-3 Filing Deadline

Form NC-3 must be filed with the department on or before January 31 of the preceding calendar year.

Never worry about withholding, deposits, tax filing when PayWow does everything for you. Spend less time in Payroll and more time on your business.

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Instructions for preparing Quarterly Income Tax
Withholding Return NC-5Q

Completing Basic information

Enter your account number, the date of the quarter ended, business name and address

Completing Quarterly Withholding Details

  • Enter total quarterly NC state income tax withheld on Line 1 and payments for the quarter on Line 2
  • Enter the difference amount on Line 3 if Line 1 is more than Line 2. This is the tax amount you owe
  • Enter the difference amount on Line 4 if Line 1 is less than Line 2. This overpayment amount will be refunded
  • Sign and provide the date, title and telephone number at the bottom of the page

When you choose PayWow, we will automatically file your Form NC-5Q with the NC Department of Revenue

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Instructions for preparing Annual Withholding Reconciliation NC-3

Completing Basic Information

Enter your name, address, NC account number, EIN or SSN of your business and the tax year

Completing Annual Withholding Details

  • Enter the total tax withheld from January to December
  • Enter the total tax withheld as reported on Form W-2 & 1099
  • Compare the difference between these two amounts and determine whether there is no tax due or have additional tax due or you have refund amount
  • Enter the interest amount and (or) penalty if applicable. You may need to enter the penalty amount if you "Failure to File by the Due Date" and (or) "Failure to File in a Format Prescribed by the Secretary"

When you choose PayWow, we will automatically file your Form NC-3 with the NC Department of Revenue

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Why choose PayWow as your payroll partner?

New Hire Reporting

Accurate & Automatic Payroll Software

Garnishments

Federal & State Tax Withholding

State tax Deposits

On-time Federal & State Tax Deposits

State tax Filing

On-time Federal & State Filings