Payroll North Carolina, Unique Aspects Of North Carolina Payroll Law And Practice

The North Carolina State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Department of Revenue
PO Box 25000
Raleigh, NC 27640-0640
(919) 733-3991

http://wwwdorstatencus/

North Carolina requires that you use North Carolina form “NC-4, Employee’s Withholding Allowance Certificate” instead of a Federal W-4 Form for North Carolina State Income Tax Withholding

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows In North Carolina cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes

In North Carolina supplemental wages are taxed at a 6% flat rate

You must file your North Carolina state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media

The North Carolina State Unemployment Insurance Agency is:

Employment Security Commission
700 Wade Ave
PO Box 26504
Raleigh, NC 27611
(919) 733-3121
http://wwwncesccom/

The State of North Carolina taxable wage base for unemployment purposes is wages up to $16,20000

North Carolina requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter

Unemployment records must be retained in North Carolina for a minimum period of six years This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination

The North Carolina State Agency charged with enforcing the state wage and hour laws is:

Department of Labor
Labor Standards Bureau
Wage and Hour Office
4 West Edenton St
Raleigh, NC 27601-1092
(800) 522-6762
wwwdolstatencus

The minimum wage in North Carolina is $515 per hour

The general provision in North Carolina concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week

North Carolina State new hire reporting requirements are that every employer must report every new hire and rehire The employer must report the federally required elements of:

• Employee’s name
• Employee’s address
• Employee’s social security number
• Employer’s name
• Employers address
• Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring
The information can be sent as a W4 or equivalent by mail, fax or electronically
There is a $2500 penalty for a late report and $500 for conspiracy in North Carolina

The North Carolina new hire-reporting agency can be reached at 888-514-4568 or on the web at wwwncnewhirescom

North Carolina does allow compulsory direct deposit but the employee’s choice of financial institution must meet federal Regulation E regarding choice of financial institutions

North Carolina requires the following information on an employee’s pay stub:

itemized deductions

North Carolina requires that employee be paid no less often than monthly, semimonthly, biweekly, weekly, or daily

In North Carolina there are no statutory requirements concerning the lag time between when the services are performed and when the employee must be paid

North Carolina payroll law requires that involuntarily terminated employees must be paid their final pay by next regular payday (by mail if employee requests) and that voluntarily terminated employees must be paid their final pay by the next regular payday or by mail if employee requests it

There is no provision in North Carolina law concerning paying deceased employees

Escheat laws in North Carolina require that unclaimed wages be paid over to the state after two years

The employer is further required in North Carolina to keep a record of the wages abandoned and turned over to the state for a period of 10 years

North Carolina payroll law mandates no more than $302 may be used as a tip credit

In the North Carolina payroll law there is no provision covering required rest or meal periods

There is no provision in North Carolina law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines

The North Carolina agency charged with enforcing Child Support Orders and laws is:

Office of Child Support Enforcement
Division of Social Services
Department of Health and Human Services
100 E Six Forks Rd
Raleigh, NC 27603-1393
(919) 571-4120
http://wwwdhhsstatencus/

North Carolina has the following provisions for child support deductions:

• When to start Withholding? First pay period after 14 days from service
• When to send Payment? Within 7 days of Payday
• When to send Termination Notice? “Promptly”
• Maximum Administrative Fee? $2 per payment
• Withholding Limits? 40% of disposable earnings for 1 order; 50% if more than 1

Please note that this article is not updated for changes that can and will happen from time to time

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