North Carolina Employer Payroll — NC-5, NCUI 101 & NC-3

Confirm the employer has NC withholding and SUI accounts open before the first paycheck. Any employer with NC employees performing services in-state must register as a NC withholding agent with NCDOR and as a NC SUI employer with the Division of Employment Security (DES) under NCGS Chapter 96. New employers receive a new-employer SUI rate of 1.0% until experience-rated.

Before or on the first day of employment, collect a completed NC-4, NC-4EZ, or NC-4 NRA from every new employee. If no NC-4 is received, default to single/zero-allowances withholding (maximum rate). NC-4s claiming more than 10 allowances, or claiming full exemption for employees earning more than $200/week, must be submitted to NCDOR. For non-resident employees, use NC-4EZ with the non-resident box checked.

Within 20 days of each new or rehired employee's first day of paid work, report to the NC New Hire Directory (administered by NC DHHS Division of Child Support Services under NCGS §110-129.2). Rehires separated for 60 or more consecutive days are reportable; shorter breaks are not. Independent contractors are not mandated to report in NC (unlike California).

Determine filing frequency based on average monthly withholding from the June 30 lookback period: under $250/month = quarterly NC-5; $250–$1,999/month = monthly NC-5 due by the 15th of the following month; $2,000+/month = semiweekly deposits via NC-5P with quarterly reconciliation on NC-5Q. All wages and supplemental pay (bonuses, commissions, severance) are withheld at the flat 4.5% rate for 2025. Employers averaging $20,000+/month must remit by EFT or face a 5% penalty.

Each quarter, file Form NCUI 101 (Employer's Quarterly Tax and Wage Report) with NC DES by the last day of the month following the quarter end (April 30, July 31, October 31, January 31). Report total gross wages, excess wages above the $32,600 annual wage base per employee, taxable wages, and the SUI contribution at the employer's NCUI 104 rate. Electronic filing is mandatory for employers with 10 or more employees. The workforce investment surcharge (20% reallocation of SUI contributions) is built into the NCUI 104 rate — do not add it as a separate line.

By January 31 following the close of the calendar year, file Form NC-3 (Annual Withholding Reconciliation) electronically via NCDOR e-Services, together with all W-2s (and any 1099-NEC, 1099-MISC, 1099-R, NC-1099M, or NC-1099PS) for employees and contractors with NC-source income or NC withholding. NC-3 reconciles total withholding deposited via NC-5/NC-5P/NC-5Q against total withholding shown on information returns. Paper filing is not permitted. Any nonresident contractors paid $1,500 or more for in-NC services must have 4% withholding remitted and reported on NC-1099PS.