North Carolina ranks among the top states in the U.S. in the fiscal soundness of its Unemployment Insurance program and has one of the lowest minimum Unemployment Insurance tax rates in the nation. Under the state's experience rating system, reductions of the standard tax rate are permitted as an incentive to employers who provide steady work for their employees. An employer's experience rating is based on the relationship between the contributions credited to the employer's account and the benefits charged against it. Tax rates have been reduced under all of the rate schedules for employers who maintain a positive balance.
| 1999 Taxable Wage Base Per Employee (annually) |
$13,200 |
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| Standard Tax Rate (first 2 years) |
1.20% |
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| North Carolina's Minimum Tax Rate |
0.01% |
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| North Carolina's Maximum Tax Rate |
5.70% |
Source: NC Employment Security Commission, UI Division
Unemployment Insurance Program for 1999
Added to each state unemployment insurance tax rate nationwide, there is a Federal unemployment insurance tax rate of 6.2% per employee, with an allowable credit of 5.4% if paying into a state unemployment program. The average unemployment tax rate for North Carolina employers is 0.7%, among the lowest in the country.
Unemployment insurance legislation in North Carolina provides employers with cost saving provisions such as:
New Plant locations of resident firms: If your company already has a plant operating in North Carolina, you have the option of either using your company's established UI tax rate if the new operation is in the same corporate division as the existing operation or you may pay the standard beginning rate for all new firms.
For more information, please contact:
North Carolina Employment Security Commission, UI Division
PO Box 25903, 700 Wade Avenue
Raleigh, NC 27611
(919) 733-7395
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