North Carolina Payroll Tax and Registration Guide

Use this checklist to make sure you’ve covered everything required to set up your account as a North Carolina employer so OnPay can accurately file and pay taxes on your behalf: 

OnPay handles the filing of all state and local taxes for businesses in North Carolina, including:

If you are an existing employer who has previously run payroll in the state of North Carolina, you likely already have the IDs and online accounts needed for OnPay to process your tax filings. 

If you are a new employer in North Carolina, you will need to register your business with the Department of Revenue and the Division of Employment Security. This must be completed for OnPay to be able to file and pay your North Carolina taxes.

Withholding Revenue Account ID

Existing North Carolina Employer: 

You can find your Withholding Revenue Account ID on notices received from the North Carolina Department of Revenue. If you cannot locate this document or Account ID, please call the North Carolina Department of Revenue at (877) 252-3052 to request it.

New North Carolina Employer: Register with the North Carolina Department of Revenue 

• Visit the North Carolina Department of Revenue and click “Online Business Registration”.
• Make sure you have the required information listed in the Business Registration Checklist.
• Applicants typically receive their Account ID immediately. Otherwise, you'll be provided with a confirmation number and your Withholding Tax ID will be mailed to your business within 10 days.

Employment Security ID and Tax Rate

Existing North Carolina Employer: 

• You can find your Employment Security Account Number and Unemployment rate on the Unemployment Tax Rate Assignment (Form NCUI 104) you should have received from the Employment Security Commission. If you have any questions, please call the North Carolina Department of Revenue directly at (919) 707-1170. 
• Your Unemployment Tax Rate can also be found on the annual Tax Rate Notice in box 2. Unemployment insurance rates are usually determined by an employer’s reserve ratio percentage (ERRP), which is the employer’s 2020 reserve ratio multiplied by 0.68. Rates range from 0.06% to 5.76%. The new employer rate is 1.0%, with a wage base of $28,000. If you can’t tell, calculating North Carolina State Unemployment Insurance is a little less like walking along the beach and a little more like climbing Mount Mitchell. You can see all the 2021 tax rates on their site.

New North Carolina Employer: Register with the North Carolina Division of Employment Security

• Go to the NC Division of Employment Security to register your business.
• You should receive your Account ID immediately. Otherwise, you'll be provided with a confirmation number and your Withholding Tax ID will be mailed to your business within 10 days.
• The new employer rate is 1.0%, with a wage base of $28,000.

All North Carolina Employers: Complete RAF-2

In order to prepare and file unemployment taxes for the state of North Carolina on your behalf, you are required by the state to complete the Remitter Authorization Form (RAF-2). Once you’ve completed this form, send it to us at hello@onpay.com.

OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax liabilities, and filing financial reports. In order to act on behalf of the taxpayer, you will need to add OnPay as your authorized representative by following the instructions in this article.