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

The North Carolina State Agency that oversees theby mail, fax or electronically.
collection and reporting of State income taxesThere is a $25.00 penalty for a late report and $500
deducted from payroll checks is:Department offor conspiracy in North Carolina.The North Carolina
Revenuenew hire-reporting agency can be reached at
P.O. Box 25000888-514-4568 or on the web at Carolina does allow
Raleigh, NC 27640-0640compulsory direct deposit but the employee's choice
(919) 733-3991 Carolina requires that you use Northof financial institution must meet federal Regulation E
Carolina form "NC-4, Employee's Withholdingregarding choice of financial institutions.North Carolina
Allowance Certificate" instead of a Federal W-4 Formrequires the following information on an employee's
for North Carolina State Income Tax Withholding.Not allpay stub:itemized deductionsNorth Carolina requires
states allow salary reductions made under Section 125that employee be paid no less often than monthly,
cafeteria plans or 401(k) to be treated in the samesemimonthly, biweekly, weekly, or daily.In North Carolina
manner as the IRS code allows. In North Carolinathere are no statutory requirements concerning the lag
cafeteria plans are not taxable for income taxtime between when the services are performed and
calculation; not taxable for unemployment insurancewhen the employee must be paid.North Carolina payroll
purposes. 401(k) plan deferrals are not taxable forlaw requires that involuntarily terminated employees
income taxes; taxable for unemployment purposes.Inmust be paid their final pay by next regular payday (by
North Carolina supplemental wages are taxed at a 6%mail if employee requests) and that voluntarily
flat rate.You must file your North Carolina state W-2sterminated employees must be paid their final pay by
by magnetic media if you are have at least 250the next regular payday or by mail if employee
employees and are required to file your federal W-2srequests it.There is no provision in North Carolina law
by magnetic media.The North Carolina Stateconcerning paying deceased employees.Escheat laws
Unemployment Insurance Agency is:Employmentin North Carolina require that unclaimed wages be paid
Security Commissionover to the state after two years.The employer is
700 Wade Ave.further required in North Carolina to keep a record of
P.O. Box 26504the wages abandoned and turned over to the state
Raleigh, NC 27611for a period of 10 years.North Carolina payroll law
(919) 733-3121mandates no more than $3.02 may be used as a tip
State of North Carolina taxable wage base forcredit.In the North Carolina payroll law there is no
unemployment purposes is wages up toprovision covering required rest or meal periods.There
$16,200.00.North Carolina requires Magnetic mediais no provision in North Carolina law concerning record
reporting of quarterly wage reporting if the employerretention of wage and hour records therefor it is
has at least 250 employees that they are reportingprobably wise to follow FLSA guidelines.The North
that quarter.Unemployment records must be retained inCarolina agency charged with enforcing Child Support
North Carolina for a minimum period of six years. ThisOrders and laws is:Office of Child Support
information generally includes: name; social securityEnforcement
number; dates of hire, rehire and termination; wages byDivision of Social Services
period; payroll pay periods and pay dates; date andDepartment of Health and Human Services
circumstances of termination.The North Carolina State100 E. Six Forks Rd.
Agency charged with enforcing the state wage andRaleigh, NC 27603-1393
hour laws is:Department of Labor(919) 571-4120
Labor Standards BureauCarolina has the following provisions for child support
Wage and Hour Officedeductions:When to start Withholding? First pay period
4 West Edenton St.after 14 days from service.
Raleigh, NC 27601-1092When to send Payment? Within 7 days of Payday.
(800) 522-6762When to send Termination Notice? "Promptly"
minimum wage in North Carolina is $5.15 per hour.TheMaximum Administrative Fee? $2 per payment.
general provision in North Carolina concerning payingWithholding Limits? 40% of disposable earnings for 1
overtime in a non-FLSA covered employer is one andorder; 50% if more than 1.
one half times regular rate after 40-hour week.NorthPlease note that this article is not updated for
Carolina State new hire reporting requirements arechanges that can and will happen from time to
that every employer must report every new hire andtime.Charles J. Read, CPA has been in the payroll,
rehire. The employer must report the federally requiredaccounting and tax business for 30 years, the last
elements of:Employee's namefifteen in private practice. Mr. Read is the author of
Employee's address"How to Start a New Business".For Professional
Employee's social security numberPayroll services at a Budget Price go to a Paperless
Employer's namePayroll Company.Go to For a full service payroll
Employers addressservice bureau with CPA's on staff.See an excerpt of
Employer's Federal Employer Identification NumberMr. Read's interviews from William Shatners
(EIN) This information must be reported within 20 days"Heartbeat of America" television show on the
of the hiring or rehiring.websites linked above.
The information can be sent as a W4 or equivalent