When it comes time to run payroll for your North Carolina business, you’ll be responsible for more than simply paying your team. There are many tax, wage, and benefits laws that employers in North Carolina must follow. Gusto has created this guide as a resource to help you understand North Carolina’s most important payroll regulations.
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Key North Carolina regulations payroll professionals need to know
North Carolina minimum wage
The hourly minimum wage in North Carolina is $7.25 for regular workers. Tipped workers must earn at least $2.13, as long as they earn enough in tips to reach at least $7.25 per hour.
North Carolina pay stubs
North Carolina employers must issue a pay stub with each paycheck. These must include an itemized statement with the amount paid and any deductions for that pay period.
North Carolina pay periods
North Carolina employers may pay their employees monthly, semimonthly, biweekly, weekly, or daily.
Determining time worked in North Carolina
In North Carolina, there is no maximum number of hours per day or number of days per week that an employee can work. “Work hours” are defined as any point a worker is employed. However, employees are due time and a half after working beyond 40 hours in a workweek.
Overtime pay and tracking in North Carolina
North Carolina employers must pay all nonexempt employees time and a half for all hours worked over 40 hours in a workweek.
Final wage payment in North Carolina
If an employee parts ways with your company for any reason, you’ll need to pay them all earned wages by the next regularly scheduled payday.
Income tax withholding in North Carolina
In North Carolina, employers must withhold state income tax at a flat 5.35% percent. Municipalities in North Carolina won’t charge additional income tax.
North Carolina benefits
All employees in North Carolina are entitled to federal Family and Medical Leave Act (FMLA) and Social Security benefits. Additionally, North Carolina employers should know state laws surrounding these benefits:
- Workers’ compensation: With limited exceptions, all North Carolina businesses with at least three employees must have workers’ compensation insurance.
- Health insurance: North Carolina state law does not require employers to offer health insurance to their employees, but under the federal Patient Protection and Affordable Care Act (ACA), all American employers with at least 50 full-time (or equivalent) employees must offer employee insurance benefits.
- Sick leave: In North Carolina, there are no laws requiring employers to offer sick leave to their employees.
Voting: North Carolina has no laws requiring employers to provide paid time off for employees to vote.
Finding the Right Payroll Provider in North Carolina—Why Gusto?
Many payroll platforms limit how often you can run payroll, but not Gusto. Our platform allows you to run payroll however frequently you’d like to suit your team’s needs and pay schedules. With Gusto, you can run payroll for your whole team in just a few clicks—including employees paid at different rates, team members based in other states, independent contractors, and salaried and hourly team members.
Gusto is suuuuuuper simple and easy to use. I’ve used multiple other payroll processes and there’s nothing like this out there.
Brian Leimone, Print Express Enterprises, Inc.
Gusto keeps your business in line with relevant municipal, state, and federal taxation and labor rules. We’ll also help you onboard your new hires in our system and report their hiring to the government for you. We continuously update our payroll system with the latest government obligations and calculations, too, so your business can better meet its compliance needs.
Gusto auto generates and sends quarterly and year-end tax forms to federal and state agencies, as well as W-2s and 1099s directly to your employees, all without needing to print. Your employees can also e-file, e-sign, and e-fax any forms needed directly within the Gusto platform.
Through Gusto, you can offer your team members the benefits they want and need. Use our payroll platform to offer and administer employee benefits such as:
- 401(k) programs
- Health, vision, and dental insurance
- Commuter benefit programs
- And more
Frequently asked questions about payroll in North Carolina
What does a North Carolina payroll provider need to track?
North Carolina payroll providers need to track all deductions taken from employee paychecks, all standard wages earned and paid, and all overtime wages paid.
How often do employees in North Carolina get paid?
In North Carolina, employees are paid daily, weekly, biweekly, semimonthly, or monthly.
Do employees in North Carolina pay state taxes?
Yes. Employers in North Carolina must deduct state income taxes.
Are North Carolina businesses required to offer sick leave?
No. Businesses are not required to offer North Carolina employees sick leave.
Do businesses in North Carolina need to offer health insurance?
While North Carolina does not have any laws requiring businesses to offer health insurance, employers must adhere to the guidelines laid out in the federal Patient Protection and Affordable Care Act (ACA).
