North Carolina Payroll Tax Compliance

Employers in North Carolina must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

North Carolina Withholding Tax Requirements

North Carolina employers are required to withhold state income tax from employee wages and file returns with the North Carolina Department of Revenue (NCDOR).

Forms required

Form NC-5Q

• Filed for withholding.
• Due on the last day of the month following the end of the quarter — April 30, July 31, October 31, Jan 31.
• Required even if no NC income tax was withheld

Form NC-3

• Reconciliation of North Carolina income tax withheld
• Filed with the fourth quarter to reconcile total withholding for the year.

Note:

TaxBandits API supports the automation of both these forms, Form NC-5Q and Form NC-3. See how it works

North Carolina Unemployment Insurance (UI) Requirements

Employers are liable for North Carolina unemployment insurance taxes, administered by the Division of Employment Security (DES).

Form NC UI-101 is used to report total wages, taxable wages, tax due, penalties, and interest.

• Due quarterly on April 30, July 31, October 31, and January 31.
• Employers must file even if no wages were paid (zero wage reports).

Note:

TaxBandits API supports the automation of NC UI 101. See how it works

North Carolina New Hire Reporting

Employers must report all newly hired and rehired employees to the state within 20 days of hire. This reporting supports the enforcement of child support orders and the detection of fraud.

Multi-state employers may report new hires to each state where employees are hired.

Note:

TaxBandits API supports the automation of the NC new hire report. See how it works