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Division of Employment Security
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Important Alert: The Division of Employment Security has begun mailing letters to claimants who received their FIRST unemployment benefit payment on or after March 1, 2014. These letters will inform claimants of a mandatory in-person interview, known as an Employability Assessment Interview (EAI). For more information on these interviews, click here.

Important Information Concerning 1099s
DES has completed the mailing of all 1099s. 1099s are also available online here. You need this 1099 because your unemployment benefits are taxable and you should include the unemployment insurance payments you received on your federal and state tax filing form.

Are you properly searching for work to remain eligible for unemployment benefits? Click here for more information.

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For more information on Voluntary Tax Contribution by Employers, please visit Frequently Asked Questions (FAQs)
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Interpretations

Excess Wage Information for Multi-State Employers

Employers are allowed to use wages reported to other states for employees also reported to North Carolina in the computation of excess wages. Using only the North Carolina wages, the employer's excess wages may appear incorrect. In these situations the employer is asked to supply us with proof that tax has been paid on the correct wages in another state(s). The employer may wish to provide paper copies of the reports filed with the other state(s) or may provide the data on magnetic tape in a prescribed format. The booklet, Use of Magnetic Media for Reporting Out-of-State Wages in Response to an Excess Wage Audit, is available for download in Microsoft Word 6.0 format.

When wages are paid in another state(s), excess wages are computed by quarter using wages paid in the other state(s) during the quarter before using wages paid in North Carolina to meet the taxable wage base. Only wages paid up to the taxable wage base in each state can be used to meet the taxable wage base in North Carolina.

Below are scenarios depicting the computation of excess wages for a single employee earning wages in multiple states.

Scenario 1

SC 7000 1000 1000 1000 0 1000 0 1000 0
VA 8000 1000 1000 1000 0 1000 0 1000 0
GA 8500 1000 1000 1000 500 1000 0 1000 0
NC 13200 5000 5000 5000 4700 5000 0 5000 0

Scenario 2

VA 8000 5000 5000 5000 0 5000 0 5000 0
NC 13200 5000 5000 5000 3200 5000 0 5000 0

Scenario 3:

NJ 17200 5000 5000 5000 5000 5000 0 5000 0
NC 13200 5000 5000 5000 0 5000 0 5000 0

Download the booklet, Use of Magnetic Media for Reporting Out-of-State Wages in Response to an Excess Wage Audit.

See Downloads to get a viewer to be used to view and print this document from your PC.