North Carolina employer tax information
About North Carolina employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in North Carolina, you must be registered with the North Carolina Department of Revenue and North Carolina Division of Employment Security so we can pay and file your state taxes.
For North Carolina Department of Revenue, you need your:
North Carolina Department of Revenue Withholding Account Identification Number (9 digits)
For North Carolina Division of Employment Security, you need your:
North Carolina Unemployment Tax Number (10 digits)
The North Carolina Division of Employment Security typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the North Carolina website or contact the NC Division of Employment Security directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
North Carolina payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
North Carolina Department of Revenue
Withholding Payment Voucher (NC-5P): processes per run
Withholding Return (NC-5): processes M=monthly or quarterly
Quarterly Income Tax Withholding Return (NC-5Q): processes quarterly
Annual Withholding Reconciliation (NC-3): processes annually
Wage and Tax Statement (NC-W2): processes annually
North Carolina Division of Employment Security
Unemployment Insurance Tax Payment: processes quarterly
Employer's Quarterly Tax and Wage Report (NCUI 101): processes quarterly
Department of Health and Human Services
New Hire Report: processes per new employee
Make North Carolina payroll tax payments
To make North Carolina withholding tax payments, you must be registered with the North Carolina Department of Revenue. For a checklist of registration requirements, visit their website.
To pay online, sign in and submit your payment through the North Carolina Department of Revenue by credit/debit MasterCard or Visa.
You can call the North Carolina DOR at (877) 308-9103 for assistance.
To make North Carolina unemployment tax payments, you must be registered with the Division of Employment Security and obtain a North Carolina Unemployment Tax Number online or mail Form NCUI604 to: NC Dept. of Commerce, Division of Employment Security, PO Box 26504, Raleigh, N.C. 27611-6504.
The Pin Number will be sent to you by mail within 10 business days. Please call 1-919-707-1150 for more information.
- To pay online, sign in and submit your payment to the Employment Security Commission by credit/debit card or eCheck.
- To pay by mail, fill out this form and mailing it to the address on the form.
Make North Carolina payroll withholding tax filings
There are three possible payment schedules for withholding taxes: monthly, quarterly or semi-weekly. Your payment schedule depends on the average amount you withhold from employee wages over time.
- To file online for monthly and quarterly payers, go to the North Carolina e-Business Center.
- To file online for semi-weekly payers, visit this web form.
For questions about withholding tax payments, contact the North Carolina Department of Revenue at (877) 252-3052 or visit www.dor.state.nc.us.
Annual reconciliation returns are due by January 31st for the preceding calendar year and must be filed electronically. In addition to the return, you must provide each of your employees with a federal form W-2 summarizing the employee’s withholding for the year.
To file online, use the eNC3 portal to file your annual withholding reconciliation for North Carolina.
For questions about withholding tax payments, contact the North Carolina Department of Revenue at 877-252-3052 or visit www.dor.state.nc.us.
North Carolina W-2s are due by January 31st for the preceding calendar year and must be filed electronically. W-2s must be accompanied by a completed Form NC-3.
To file online, use the eNC3 portal to submit your NC-3 and NC-W2s. You can upload your files, or enter your data manually.
For questions about W-2 filings, contact the North Carolina Department of Revenue at 1-877-252-3052 or at eNC3@ncdor.gov.
Make unemployment insurance tax filings in North Carolina
Unemployment tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter):
- To file online, use the North Carolina Division of Employment Security Portal. You’ll also be able to pay taxes via credit card and eCheck online.
- To file by mail, download the NCUI 101 and include the completed form with a check for any payments due. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the North Carolina Division of Employment Security. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact North Carolina Division of Employment Security at 919-707-1150 or visit des.nc.gov.
Register as a new employer in North Carolina
Register online with the Department of Revenue to receive your Withholding Account Identification Number. Upon successful completion of online registration, you will receive your Withholding Account Identification Number.
If you do not receive your Withholding Account Identification Number, call the Department of Revenue at 877-252-3052.
Register online with the Division of Employment Security to receive your Unemployment Tax Number. Upon successful completion of online registration, you will receive your Unemployment Tax Number.
If you do not receive your Unemployment Tax Number, call the Division of Employment Security at 866-278-3822.
Find your North Carolina tax account numbers
Sign in to the Department of Revenue e-Business Center. Your account number will be available once you Sign in. Locate your nine-digit (XXXXXXXXX) account number on any previously filed quarterly return (NC-5). For assistance, call the Department of Revenue at 877-252-3052.
Sign in to the Division of Employment Security website. Your Unemployment Tax Number will be available once you log in. Locate your 10-digit (XXXXXXXXXX) account number on any previously filed quarterly report (NCUI-101). For assistance, call the Division of Employment Security at 866-278-3822.
Sign in to the Division of Employment Security website. Your UI Tax Rate will be available once you sign in. Your UI Tax Rate can be found on the Tax Rate Notice sent by the Division of Employment Security each November. If you are unsure of your tax rate, call the Division of Employment Security at 866-278-3822.
You are responsible for ensuring Square Payroll has the correct tax rate on file for your business. If you need to update your rate, you can do so from the Tax Info tab in your online Square Dashboard.