The unemployment insurance program in North Carolina is part of a national system designed to provide temporary economic benefits to eligible workers. Eligible workers, as described on North Carolina Unemployment Insurance posters are individuals who (1) lost their jobs through no fault of their own, (2) worked during a specified time period and received a minimum amount of wages during that time period, (3) are able and available for work, and (4) are actively seeking new employment. All benefits and administrative costs of the unemployment insurance program are paid by employers through State Unemployment Tax Act (SUTA) and the Federal Unemployment Tax Act (FUTA) payments. By reading North Carolina Unemployment Insurance posters, employees will learn that no money is withheld from workers’ checks to pay for unemployment benefits.
The North Carolina Employment Security Law and Commission Regulations require each employer to submit true and accurate information for determining liability. Each employer in the state of North Carolina must complete Form NCUI 604, Employer Status Report and submit this form for a determination of liable status.
Each employer is also required to notify the Agency when changes in status occur such as changes in ownership, changes of address, when the business closes or ceases to operate, or when a closed or inactive business begins to operate again.
Employers are required to file a quarterly report for each quarter, beginning with the quarter in which employment begins. Tax must be paid on each employee’s wages up to the taxable wage base for each calendar year. Wages, as described on North Carolina Unemployment Insurance posters, includes all pay for services, in cash or any other medium such as food or lodging. Agricultural and domestic employers should report only cash wages paid to employees and not food or lodging. Quarterly wages must be reported for each employee by name and Social Security Number. Correct and complete Social Security numbers are required to properly record wages.
The average unemployment tax rate for North Carolina employers is 0.4%, the lowest among the Southeastern states and among the lowest in the country. North Carolina offers new employers a tax rate of 1.2% for the first two years of operation. Those employers who avoid laying off workers and maintain a positive “experience rating” can see their tax rates decline further, to a minimum rate of 0.0%. Added to each state unemployment insurance tax rate nationwide, there is the federal unemployment insurance tax rate of 6.2% per employee, with an allowable credit of 5.4% if paying into a state unemployment program.
All this information is up to date on the current North Carolina Unemployment Insurance posters.