North Carolina PayStub & Tax Compliance in 2025 for Employers
Before distributing pay stubs to employees and contractors in North Carolina, it's crucial to grasp the relevant laws and regulations.
This resource aims to clarify the specific guidelines employers must adhere to when managing payroll and issuing pay stubs in the state of North Carolina.
Pay stub regulations in North Carolina
1. Are pay stubs required by law in North Carolina?
Employers in North Carolina must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in North Carolina?
You can pay your employees either daily, weekly, bi-weekly, semi-monthly or monthly. As pay stubs are mandatory in North Carolina, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in North Carolina?
The following information can be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Number of hours worked during the pay period
- Tax Deductions
- Any itemized deductions taken from the employee's paycheck
- Gross wages earned
- The dates of the pay period.
4. Does North Carolina have a state income tax?
Yes. The State of North Carolina requires employers to withhold income taxes from employee paychecks.
5. Are there any other taxes applicable to North Carolina?
No. There are no local taxes in addition to federal and state income taxes applicable to employees in the state of North Carolina
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's total allowances
- Employee's exemption status from state withholding
- Employee's filing status and additional state withholding amount
North Carolina wage and hour laws
In North Carolina, employers must adhere to wage and hour regulations, encompassing provisions such as guaranteeing non-exempt employees receive minimum wage, proper compensation for overtime, suitable meal and rest breaks, and accrued paid time-off benefits.
These regulations encompass various aspects of employment law.
North Carolina Minimum wage
In North Carolina, employers are legally obligated to compensate workers with at least the minimum hourly wage, ensuring compliance with legal requirements.
As of 2025, the mandated minimum wage in North Carolina stands at $7.25 per hour.
Overtime pay
Employers are required to compensate employees with at least the minimum wage for every hour worked. Additionally, employees must receive overtime pay at a rate of one and a half times their regular pay for any hours worked beyond 40 in a workweek.
Meal break and rest break
The North Carolina Wage and Hour Act doesn't mandate mandatory rest or meal breaks for employees aged 16 and above.Generally, breaks lasting less than 30 minutes, such as a 15-minute rest break, are typically required to be paid by the employer.
Paid time off and leave
Employers in North Carolina are obligated to offer both mandatory and discretionary leave benefits to their employees.
| Required Leave | Non-Required leave |
|---|---|
| Unpaid | Paid or Unpaid |
| The Family and Medical Leave Act (FMLA) is a federal law that grants eligible workers the right to take up to 12 weeks of unpaid | Vacation leave |
| Jury Duty leave | Bereavement leave |
| Military leave | Holiday leave |
| Sick leave | |
| Voting leave |
North Carolina state payroll taxes 2025
In North Carolina, payroll taxes are categorized into the following classifications:
- North Carolina state Personal Income tax(PIT)
- North Carolina State Unemployment Insurance (SUI)
North Carolina state Personal Income tax(PIT)
In North Carolina, the state personal income tax rates vary depending on their filing status and income level. Filing statuses include Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
The North Carolina individual income tax rates for Taxable Years are as follows:
- Beginning in 2024, the rate is 4.5%.
- Beginning in 2025, the rate is 4.25%.
- For Taxable Years after 2025, the rate is 3.99%.
North Carolina State Unemployment Insurance (UI)
In North Carolina, the State Unemployment Tax Act (SUTA) was established to provide assistance to unemployed individuals by offering unemployment benefits. This law empowers the state to gather funds necessary for disbursing unemployment insurance benefits to eligible individuals who find themselves without a job.
- In 2025, the State Unemployment Tax Act (SUTA) rates in North Carolina range from a minimum of 0.06% to a maximum of 5.76%.
- Unemployment Insurance (UI) Tax Rate for New Employers (2025): 1%
- Base Rate for UI Tax: 1.9%
- Employer's Reserve Ratio Percentage (ERRP): ERRP is determined by multiplying the Employer's Reserve Ratio by 0.68.
- The taxable wage base for 2025 is set at $32,600.
North Carolina payroll tax filing
- Report of New hire Employees
- Report of New hire Independent Contractors
- North Carolina Personal income tax filing (Form D-400)
- North Carolina Quarterly Wage and Tax Report (Form NCUI-101)
Report of New hire Employees
Employers in North Carolina are mandated by federal and state law to report newly hired and re-hired employees to the North Carolina New Hire Directory within 20 days of their start date.
Report of New hire Independent Contractors
In North Carolina, employers are not required to report newly hired independent contractors to the State Directory of New Hires.
How to report employees' new hire in North Carolina?
You have the flexibility to select from a range of methods for reporting new hires.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: North Carolina New Hire Directory P.O. Box 427 Norwell, MA Public Phone:888-514-4568 | Fax 1: 866-257-7005 |
North Carolina Personal income tax filing (Form D-400)
The NCDOR began accepting 2024 individual income tax returns on January 27, 2025, and electronic corporate, partnership, and estate tax returns on January 15, 2025. For calendar-year taxpayers, the filing deadline is Tuesday, April 15, 2025.
Reminder: Taxpayers affected by Hurricane Helene are eligible for state tax relief, including penalty waivers for late filings and payments, if returns are filed or taxes paid by May 1, 2025.
North Carolina Quarterly Wage and Tax Report (Form NCUI-101)
Employers must submit the Quarterly Tax and Wage Report (Form NCUI 101) for each quarter, starting from the quarter when employment commences. Taxes are due on wages up to the taxable wage base for each calendar year per employee.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and North Carolina state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
Using SecurePayStubs, you can swiftly generate pay stubs for both employees, complete with precise federal and North Carolina state tax calculations, and independent contractors, all in under 2 minutes. Our efficient paystub generator ensures accuracy and compliance with state regulations for seamless payroll management.
Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately. Spend less time generating pay stubs and more on your business growth.Utilize our North Carolina payroll calculator to ensure accurate calculations customized to the state's specific regulations.
This article has been updated from its original publication date of February 13, 2025.