Payroll North Carolina, Unique Aspects of North Carolina Payroll Law and Practice

The North Carolina State Agency that overseesequivalent by mail, fax or electronically.
the collection and reporting of State income taxesThere 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
RevenueCarolina new hire-reporting agency can be reached
P.O. Box 25000at 888-514-4568 or on the web at Carolina does
Raleigh, NC 27640-0640allow compulsory direct deposit but the
(919) 733-3991 Carolina requires that you useemployee's choice of financial institution must
North Carolina form "NC-4, Employee's Withholdingmeet federal Regulation E regarding choice of
Allowance Certificate" instead of a Federal W-4financial institutions.North Carolina requires the
Form for North Carolina State Income Taxfollowing information on an employee's pay
Withholding.Not all states allow salary reductionsstub: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 IRSmonthly, semimonthly, biweekly, weekly, or
code allows. In North Carolina cafeteria plans aredaily.In North Carolina there are no statutory
not taxable for income tax calculation; not taxablerequirements concerning the lag time between
for unemployment insurance purposes. 401(k) planwhen 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 Northrequires 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 statepayday (by mail if employee requests) and that
W-2s by magnetic media if you are have at leastvoluntarily terminated employees must be paid
250 employees and are required to file yourtheir final pay by the next regular payday or by
federal W-2s by magnetic media.The Northmail if employee requests it.There is no provision
Carolina State Unemployment Insurance Agencyin North Carolina law concerning paying deceased
is:Employment Security Commissionemployees.Escheat laws in North Carolina require
700 Wade Ave.that unclaimed wages be paid over to the state
P.O. Box 26504after two years.The employer is further required
Raleigh, NC 27611in North Carolina to keep a record of the wages
(919) 733-3121abandoned and turned over to the state for a
State of North Carolina taxable wage base forperiod of 10 years.North Carolina payroll law
unemployment purposes is wages up tomandates no more than $3.02 may be used as a
$16,200.00.North Carolina requires Magnetic mediatip credit.In the North Carolina payroll law there is
reporting of quarterly wage reporting if theno provision covering required rest or meal
employer has at least 250 employees that theyperiods.There is no provision in North Carolina law
are reporting that quarter.Unemployment recordsconcerning record retention of wage and hour
must be retained in North Carolina for a minimumrecords therefor it is probably wise to follow
period of six years. This information generallyFLSA guidelines.The North Carolina agency
includes: name; social security number; dates ofcharged 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 andDivision of Social Services
circumstances of termination.The North CarolinaDepartment of Health and Human Services
State Agency charged with enforcing the state100 E. Six Forks Rd.
wage and hour laws is:Department of LaborRaleigh, NC 27603-1393
Labor Standards Bureau(919) 571-4120
Wage and Hour OfficeCarolina has the following provisions for child
4 West Edenton St.support deductions:When to start Withholding?
Raleigh, NC 27601-1092First pay period after 14 days from service.
(800) 522-6762When to send Payment? Within 7 days of
minimum wage in North Carolina is $5.15 perPayday.
hour.The general provision in North CarolinaWhen to send Termination Notice? "Promptly"
concerning paying overtime in a non-FLSAMaximum Administrative Fee? $2 per payment.
covered employer is one and one half timesWithholding Limits? 40% of disposable earnings
regular rate after 40-hour week.North Carolinafor 1 order; 50% if more than 1.
State new hire reporting requirements are thatPlease note that this article is not updated for
every employer must report every new hire andchanges that can and will happen from time to
rehire. The employer must report the federallytime.Charles J. Read, CPA has been in the payroll,
required elements of:Employee's nameaccounting and tax business for 30 years, the last
Employee's addressfifteen in private practice. Mr. Read is the author
Employee's social security numberof "How to Start a New Business".For Professional
Employer's namePayroll services at a Budget Price go to a
Employers addressPaperless Payroll Company.Go to For a full service
Employer's Federal Employer Identificationpayroll service bureau with CPA's on staff.See an
Number (EIN) This information must be reportedexcerpt 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 oron the websites linked above.