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Paying employees in North Carolina
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In North Carolina, you must be registered with the North Carolina Department of Revenue (DOR) (income tax withholding) and the North Carolina Employment Security Commission (unemployment tax).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your North Carolina Accounts and Rate Info
North Carolina requires you to register online with the North Carolina Department of Revenue for your withholding tax account. For your Unemployment tax account, please refer to the instructions on the Division of Employment Security website and then continue to create your online account here. You should receive your account number and tax rate in 4-6 weeks in the mail.
Find This Information
Locate your NC Withholding Account Identification Number:
- Calling the agency at (877) 252-3052
- Reviewing “coupon booklets” from the agency, which include your Account ID and tax deposit schedule frequency.
Locate your NC Unemployment Tax Number and Tax Rate:
- Find this on the Unemployment Tax Rate Assignment (Form NCUI 104) you received from the DES
- Call the agency at (919) 289-5424
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid NC address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “North Carolina” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your NC Withholding Account Identification Number, NC Unemployment Tax Number, and your assigned NC Unemployment Insurance Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your NC tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your NC state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your NC state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.