| The North Carolina State Agency that oversees | | | | equivalent by mail, fax or electronically. |
| the collection and reporting of State income taxes | | | | There is a $25.00 penalty for a late report and |
| deducted from payroll checks is:Department of | | | | $500 for conspiracy in North Carolina.The North |
| Revenue | | | | Carolina new hire-reporting agency can be reached |
| P.O. Box 25000 | | | | at 888-514-4568 or on the web at Carolina does |
| Raleigh, NC 27640-0640 | | | | allow compulsory direct deposit but the |
| (919) 733-3991 Carolina requires that you use | | | | employee's choice of financial institution must |
| North Carolina form "NC-4, Employee's Withholding | | | | meet federal Regulation E regarding choice of |
| Allowance Certificate" instead of a Federal W-4 | | | | financial institutions.North Carolina requires the |
| Form for North Carolina State Income Tax | | | | following information on an employee's pay |
| Withholding.Not all states allow salary reductions | | | | stub:itemized deductionsNorth Carolina requires |
| made under Section 125 cafeteria plans or 401(k) | | | | that employee be paid no less often than |
| to be treated in the same manner as the IRS | | | | monthly, semimonthly, biweekly, weekly, or |
| code allows. In North Carolina cafeteria plans are | | | | daily.In North Carolina there are no statutory |
| not taxable for income tax calculation; not taxable | | | | requirements concerning the lag time between |
| for unemployment insurance purposes. 401(k) plan | | | | when the services are performed and when the |
| deferrals are not taxable for income taxes; | | | | employee must be paid.North Carolina payroll law |
| taxable for unemployment purposes.In North | | | | requires that involuntarily terminated employees |
| Carolina supplemental wages are taxed at a 6% | | | | must be paid their final pay by next regular |
| flat rate.You must file your North Carolina state | | | | payday (by mail if employee requests) and that |
| W-2s by magnetic media if you are have at least | | | | voluntarily terminated employees must be paid |
| 250 employees and are required to file your | | | | their final pay by the next regular payday or by |
| federal W-2s by magnetic media.The North | | | | mail if employee requests it.There is no provision |
| Carolina State Unemployment Insurance Agency | | | | in North Carolina law concerning paying deceased |
| is:Employment Security Commission | | | | employees.Escheat laws in North Carolina require |
| 700 Wade Ave. | | | | that unclaimed wages be paid over to the state |
| P.O. Box 26504 | | | | after two years.The employer is further required |
| Raleigh, NC 27611 | | | | in North Carolina to keep a record of the wages |
| (919) 733-3121 | | | | abandoned and turned over to the state for a |
| State of North Carolina taxable wage base for | | | | period of 10 years.North Carolina payroll law |
| unemployment purposes is wages up to | | | | mandates no more than $3.02 may be used as a |
| $16,200.00.North Carolina requires Magnetic media | | | | tip credit.In the North Carolina payroll law there is |
| reporting of quarterly wage reporting if the | | | | no provision covering required rest or meal |
| employer has at least 250 employees that they | | | | periods.There is no provision in North Carolina law |
| are reporting that quarter.Unemployment records | | | | concerning record retention of wage and hour |
| must be retained in North Carolina for a minimum | | | | records therefor it is probably wise to follow |
| period of six years. This information generally | | | | FLSA guidelines.The North Carolina agency |
| includes: name; social security number; dates of | | | | charged with enforcing Child Support Orders and |
| hire, rehire and termination; wages by period; | | | | laws is:Office of Child Support Enforcement |
| payroll pay periods and pay dates; date and | | | | Division of Social Services |
| circumstances of termination.The North Carolina | | | | Department of Health and Human Services |
| State Agency charged with enforcing the state | | | | 100 E. Six Forks Rd. |
| wage and hour laws is:Department of Labor | | | | Raleigh, NC 27603-1393 |
| Labor Standards Bureau | | | | (919) 571-4120 |
| Wage and Hour Office | | | | Carolina has the following provisions for child |
| 4 West Edenton St. | | | | support deductions:When to start Withholding? |
| Raleigh, NC 27601-1092 | | | | First pay period after 14 days from service. |
| (800) 522-6762 | | | | When to send Payment? Within 7 days of |
| minimum wage in North Carolina is $5.15 per | | | | Payday. |
| hour.The general provision in North Carolina | | | | When to send Termination Notice? "Promptly" |
| concerning paying overtime in a non-FLSA | | | | Maximum Administrative Fee? $2 per payment. |
| covered employer is one and one half times | | | | Withholding Limits? 40% of disposable earnings |
| regular rate after 40-hour week.North Carolina | | | | for 1 order; 50% if more than 1. |
| State new hire reporting requirements are that | | | | Please note that this article is not updated for |
| every employer must report every new hire and | | | | changes that can and will happen from time to |
| rehire. The employer must report the federally | | | | time.Charles J. Read, CPA has been in the payroll, |
| required elements of:Employee's name | | | | accounting and tax business for 30 years, the last |
| Employee's address | | | | fifteen in private practice. Mr. Read is the author |
| Employee's social security number | | | | of "How to Start a New Business".For Professional |
| Employer's name | | | | Payroll services at a Budget Price go to a |
| Employers address | | | | Paperless Payroll Company.Go to For a full service |
| Employer's Federal Employer Identification | | | | payroll service bureau with CPA's on staff.See an |
| Number (EIN) This information must be reported | | | | excerpt of Mr. Read's interviews from William |
| within 20 days of the hiring or rehiring. | | | | Shatners "Heartbeat of America" television show |
| The information can be sent as a W4 or | | | | on the websites linked above. |