Tax Information (continued)

How Do I Apply for a North Carolina Unemployment Tax Number?

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.

You can fill out the Employer Status Report (NCUI 604) online and receive a quick determination. If you prefer, you can download a copy to print, fill out, and mail to ESC.

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. You can fill out a Change in Status Report (NCUI101-A) online or, if you prefer, you can download a copy to print, fill out, and mail to ESC.

If you have further questions regarding liability under the North Carolina Employment Security Law, please contact ESC.

Reporting Tax and Wages

Form NCUI 101, Employer's Quarterly Tax and Wage Report is used to report wage and tax information. Liable employers will need to file the report online, download a blank form from our website, or contact our Status Unit at (919) 707-1170 to request that a blank form be mailed to them.

The NCUI 101 data can also be submitted on magnetic media, or from this web site.

• Submit Quarterly Tax & Wage Report online
• Information on filing Tax and Wage Report via Magnetic Media

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. 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.

Both tax and reported wages are due by the last day of the month following the end of each quarter. Failure to receive a report form does not relieve employers of the responsibility to file. If the form is lost or damaged or if additional forms are needed, contact our Status Unit at (919) 707-1170 or, if you are located in North Carolina, contact a Tax Auditor through the nearest Employment Security Commission Office.

Payment for any tax due should be sent with the report. If the amount of tax due is less than $5.00, no payment is required but an electronic or paper report must be submitted. A report must be submitted even if the employer has no employees for a quarter. If employment has ended and is not expected to begin again in the near future, a request for inactive status should be made on form NCUI 101-A, Change In Status Report.

The Employment Security Commission is committed to the timely and accurate processing of tax and wage reports received from employers. In accordance with Commission Regulation No. 5, the agency utilizes three main methods in this process to maximize cost effectiveness and efficiency. Tax and wage information must be submitted either (1) on Form NCUI 101, Employer's Quarterly Tax and Wage Report, and Form(s) NCUI 101-B, Continuation Sheet for Report of Employees Wages, if needed, (2) on magnetic tape or diskette, or (3) electronically transmitted via the Internet.

Tax and wage information may be filed in a variety of file layouts on magnetic tape or diskette and electronic transmission, and is required for any employer or business reporting for one or more employers, who reports a total of 100 or more wage items per quarter. Failure of an employer or agent to comply with this requirement results in a penalty or denial of the right to report wages and file reports for the employer for a period of one year [N.C.G.S. 96-9(a)(7)].

A tax and wage reporting software package has been developed for use on IBM and IBM compatible personal computers and is provided free of charge to employers and remitters. See Reporting Tax and Wages via Magnetic Media for additional Information.

Importance of Timely Reports and Tax Payments
If quarterly wage reports and tax payments are timely and accurately filed:

• Employers receive maximum state unemployment tax credit against FUTA.
• Employers avoid penalty and interest charges for late reports and payments.

Note: The postmark date determines timeliness. Metered mail is not proof of timeliness.

Failure to file quarterly reports or make payments when due will result in a charge for penalties for late filing and/or late payment, and/or interest on the amount of tax due. Late filing penalty is 5% of the amount of tax due per month, or portion thereof, to a maximum of 25%. Late payment penalty is 10% of the amount of tax due. For quarters prior to April 30, 2001 a minimum of $5.00 will be charged. Even though no tax may be owed for a given quarter, the return must be filed timely. The rate is subject to change semi-annually as provided in GS 105-241.1( i ).

Use information from the Table below to calculate the interest due on delinquent unemployment insurance taxes. Determine the interest rate applicable to the delinquent period(s). Multiply the amount of tax due by the interest rate for each month, or portion thereof, from the due date to the date paid.

UI Tax Information continues on next page.

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