The North Carolina State Unemployment Insurance Tax System (NCSUITS) is the system used to administer North Carolina’s unemployment insurance tax program. It is designed to be easy to use with convenient self-service options. Learn more on the NCSUITS page.

Employers and Agents must have an Employer or Agent ID Number. You can get an ID Number when you create an NCSUITS account here: New Account Registration.

To create your NCSUITS account and get your ID Number:

1. Click on Create an Online Account.
2. Choose I am a Business/Agent/Third-Party user, requiring DES claim/tax services for businesses.
3. Check the box next to one of these options:
   • I am an Agent/Third-Party Administrator working on behalf of an employer and do not have an ID Number for my agency. (NOTE: This is NOT for employees of an employer. If you are an employee, choose the second option.)
   • I am an Employer that does not have an Employer ID Number. (If you are an employer or employee acting for your organization, choose this option.)
4. Fill in all required fields on the next screen.
5. Check your email for instructions on how to activate your NCSUITS account.
6. Follow the steps to get your ID number.

There are two ways to add a Claims or Tax Agent. Videos for each of the methods below can be found on the NCSUITS Videos page.

1. Employers need to log in to their NCSUITS account.
2. Click on Account Maintenance.
3. Select Agent Assignment and choose Add Agent. You will need the Agent’s ID number.
4. Assign the appropriate Claims and/or Tax roles to the Agent.

Services for Claims or Tax Agents, sometimes called third-party administrators (TPAs), are for people who have the power to act on behalf of an employer.

Tax rates are given to employers who are subject to unemployment tax. Tax rates are determined using the same experience rating for all employers, except for beginning employers who meet the requirements for a flat tax rate. The base rate for a given year is determined by the stability of the Unemployment Insurance Trust Fund (UI Trust Fund). The chart below provides important employer tax rate information for this fiscal year.

Important Information for Annual Experience Rating for 2026 Tax Rates

The experience rating system is used to make sure there is fair handling of costs of the system among employers to encourage them to stabilize their workforce. The North Carolina UI experience rating system works similar to an insurance program. An employer begins at an introductory rate. After two years of being a liable employer, the tax rate is calculated based on a formula set by statute.

The tax rate for an employer may be higher or lower after two years as a liable employer. Factors such as payroll, taxes paid, and timeliness of reporting quarterly wages can impact the employer’s tax rate. Each employer is also given credit for payments posted to their NCSUITS account. These credits are used to figure the yearly base rate from which the tax rate for each contributory employer is given. Based on economic conditions, your rate could be as low as 0.060% or as high as 5.760%.

To determine your experience rating, your payroll for the last three fiscal years (as of July 31 of the current year) will be divided into your credit or debit balance to yield a ratio. This ratio is then multiplied by 0.68 to yield the Employer's Reserve Ratio Percentage, or ERRP. Refer to the rate formulas below to calculate your unemployment tax rate.

*Defined in Section 96-9.2(c) as the totals for all insured employers. The calculated Contribution Rate for any given tax year applies equally to all experience rated employers.

An employer’s tax rate may be lowered if one of two things occurs:

• The employer’s account is subject to being charged with benefits for at least 12 calendar months ending July 31 of each year.
• The employer’s liability is extended over a period of all or part of two consecutive calendar years.

New Employer Tax Rate Table

Your Unemployment Tax Rate Notice (Form NCUI 104) for the upcoming tax year will be in your NCSUITS Inbox each November or December. The tax rate is final, unless protested in writing before May 1 of the following year. No payment is required when the NCUI-104 is received in your inbox, and it can’t be used to pay any taxes that are due.

1. Log in to your NCSUITS account.
2. View Employer Information on the main screen. Click Rate to show the previous year’s rates.
3. Select Your Options and Tax Rate. Choose the year you want to view and click Search.

Log in to your NCSUITS account. From the Your Options menu:

1. Click Documents and Emails.
2. Go to My Correspondences and click Search to find your Annual Rate Notice.

Tax rates are assigned using the same experience rating formula. The base rate for a given year is determined by the UI Trust Fund.

You may protest a tax assessment and payment demand letter using the NCSUITS inquiry feature or in writing. Protests must be made prior to April 30 of that same calendar year. A protest must be signed by an owner, partner, or corporate officer—not a third party. An example of a valid protest is if an error was found in the figures used to calculate the tax rate.

The protest may be faxed to (919) 715-0780 or mailed to:
N.C. Division of Employment Security
P.O. Box 26504
Raleigh, NC 27611-6504

1. Your tax rate may be lowered below the standard rate for any calendar year. For your rate to be lowered, your account is subject to being charged with benefits for at least 12 calendar months ending July 31 of each year.
2. The rate can also be lowered by having your liability extend over a period of all or part of two consecutive years.
3. Voluntary contributions can also lower your tax rate.

The current experience-rated tax rates for contributory employers are between 0.06% and 5.76%.  For an employer’s contribution rate to be reduced below the standard rate for any calendar year, its account must be subject to being charged with benefits for at least 12 calendar months ending July 31 or its liability must extend over a period of all or part of two consecutive calendar years.

Employers receive credit for tax payments posted to their account. These credits are incorporated to determine an employer's contribution rate on an annual basis. August 1 is the computation date for employer contribution rates.

Voluntary contributions may be made online through your NCSUITS account or by check. Checks must be noted as voluntary contributions to NCDES and mailed to:

N.C. Division of Employment Security
P.O. Box 26504
Raleigh, NC 27611-6504

NOTE: If a voluntary contribution is made within 30 days of receiving your Tax Rate Notice, it will be considered to have been made as of July 31 of the previous year. Your NCSUITS account will be credited and your tax rate will be adjusted for the upcoming year.

DES will provide you with your new tax rate in NCSUITS under the Correspondence section. The summary you receive the following year will reflect the contributions. You can also view your tax rate in your NCSUITS account.

Yes. Your tax rate can change because of factors such as your payroll, taxes paid, timeliness of payments, unemployment benefits charged against your account, and tax rate in effect for that year.

A 20% surtax is imposed on contributions in a calendar year when the amount in the UI Trust Fund does not equal or exceed $1 billion in accordance with N.C. General Statute § 96-9.7(b). Your assigned rate will be the combined or composite rate.

The surtax is not Federal Unemployment Tax Act (FUTA) certified. When the surtax is imposed, DES will only certify 83.33% of the total taxes paid. If the surtax is not imposed, DES will certify 100% of the total taxes paid.

The surtax applies to all employers who are making payroll unemployment contributions.

Your rate will increase by approximately 20% if the Trust Fund does not equal or exceed $1 billion. The rate you are assigned will be the combined or composite rate.

Sign in to your NCSUITS account to file the Quarterly Tax and Wage Report, to report wage information and pay taxes. You must file the Quarterly Tax and Wage Report (Form NCUI101) for each quarter, beginning with the quarter in which employment begins and the employer becomes liable.

Taxes 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. If you have 10 or more employee wage items, you must file the report online. 

Employers, or an employer’s agent that reports wages for 10 employees or more, must file the Quarterly Tax and Wage Report in electronic format through NCSUITS.  Failure to file electronically results in:

• Employers are assessed a $25.00 penalty.
• Agents may be denied the ability to report wages and file reports for that employer for one year, following the calendar quarter in which the agent filed the improper report.

Quarterly Tax and Wage Reports are due by the last day of the month following the end of each quarter.

Reporting Time Period

If the due date falls on a weekend or a holiday, the due date will be the first working day after the weekend or holiday.

The Employer's Quarterly Tax and Wage Report (Form NCUI 101) is used to report wage and tax information. The paper form can be used if you have nine (9) or less employee wage items. You must complete the form, download it, and mail it to the address listed on the form.

NOTE: This option is only available to employers who have nine (9) or less employee wage items. If a paper Form NCUI 101 is submitted with 10 or employees, the employer will incur a penalty per NC General Statutes.

Employers and Agents may make payments in their NCSUITS account. Payment options are:

1. Pay online in NCSUITS via ACH Debit (e-check) or credit card.
2. Create a Payment Voucher form in NCSUITS and submit check by mail.
3. Create an addendum record and submit to the bank for an ACH Credit payment.
   1. For more information about ACH Credit payments, contact the UI Employer Support Center at 866-278-3822.

While a single debt of $5.00 or less will appear as debt in NCSUITS and may be paid, DES does not pursue collections on a single accounts receivable (AR) for less than $5.00. 

NOTE: To avoid duplication, do not mail the payment with a copy of the electronically filed return.

Employers and agents that do not file their quarterly report or make payments by the due date will be charged penalties and interest on the amount of taxes due.

• Late filing penalty is 5% of the amount of taxes due per month not to exceed a maximum of 25%.
• Late payment penalty is 10% of the amount of taxes due.

Interest is charged at the rate set forth in N.C. General Statute § 105-241.21(i) and is subject to change semi-annually.

Note: If your report is mailed, it must be postmarked by the due date. Metered mail is not proof of timeliness.

Excess wages are the wages that are over the taxable wage base for North Carolina. Every state has a taxable wage base. North Carolina’s taxable wage base changes yearly based on a formula established by our Employment Security Law. For the year 2025, the taxable wage base is $32,600.00. This means you pay taxes on each employee’s cumulative yearly wages up to the amount of the taxable wage base of $32,600.00. Any amount over the taxable wage base is considered in Excess of the Taxable Wage Base and is not counted. However, all wages subject to the Employment Security Law must be reported for each employee.

NOTE: If you file your return online, the system will automatically calculate the excess wages for you.

Reporting

You report employees’ ENTIRE gross wage amounts in the Total Gross Wages field. You compute tax due on the taxable wage amount.

Formula

Total Wages minus Excess Wages equal Taxable Wages.

Ex. Employee made:

• $15,000 in 1st Quarter:
  • Total Wages = $15,000
  • Excess Wages = $0.00
  • Taxable Wages = $15,000
• $15,000 in 2nd Quarter:
  • Total Wages = $15,000
  • Excess Wages = $0.00
  • Taxable Wages = $15,000
• $15,000 in 3rd Quarter:
  • Total Wages = $15,000
  • Excess Wages = $12,400
  • Taxable Wages = $2,600
• $15,000 in 4th Quarter:
  • Total Wages = $15,000
  • Excess Wages = $15,000
  • Taxable Wages = $0.00

The taxable wage base is published on our des.nc.gov website and the employer’s annual tax rate notice.

DES provides instructional videos to show employers and agents how to upload or amend wage reports. For a full list of NCSUITS videos, go to the NCSUITS video page. Details about NCSUITS file requirements can be found on the NCSUITS documents page.

• Uploading Wage Reports by File Format
• Agent Wages - File Upload
• Agent Amend Wages - File Upload
• Employer Wages - File Upload
• Employer Wages - Amend Wages via File Upload

The interest rate is set by law under N.C. General Statute §105-241.21. Use the table below to calculate the interest due on overdue taxes.

1. Find the interest rate that applies to the overdue (or delinquent) period(s).
2. Then, multiply the amount of tax due by the interest rate for each month, or part of it, from the due date to the date paid.

Employers must submit correct information when filing the Quarterly Tax and Wage Report as stated in the North Carolina Employment Security Law. If incorrect information is submitted, adjustments can be made online through your NCSUITS account. If you need to send it in by mail, contact the UI Employer Support Center at 866-278-3822.

NCSUITS keeps a copy of employers’ Quarterly Tax and Wage Reports and Adjustments for a period of five (5) years. You may view the reports and adjustments any time in your NCSUITS account.

DES sends the IRS information about your State Unemployment Tax Act (SUTA) tax rate, taxable wages, and taxes paid by employers in the prior year. The IRS compares this data with what you reported on your Federal Unemployment Tax Act (FUTA) Tax Return (IRS Form 940).

NOTE: If there is an extra surtax for the UI Trust Fund, only 83.33% of the taxes paid will be reported. The rate used will be the UI rate, not the composite rate. If there is no surtax, DES will report 100% of the total taxes paid.

If there is an error, the IRS will send you a letter. You must fix the error by correcting IRS Form 940 or getting a corrected certification from DES.

You can request a re-certification in your NCSUITS account. The re-certification may be printed and attached to the IRS letter of assessment. If requesting by mail, requests must include your Federal Employer Identification Number (FEIN), your Employer ID, and the period you need re-certified. Send your request to:

Employer Accounts Adjustment Unit 
N.C. Division of Employment Security 
P.O. Box 26504 
Raleigh, NC 27611-6504

A corrected Employer Account Abstract (Form 940-C) will be sent to you. Attach it to the IRS letter and send it back to the IRS.

If you have employees who work in other states as well as North Carolina, you can use the wages reported to those other states to help calculate excess wages for North Carolina. Your excess wages may be incorrect if you only use North Carolina wages. If this happens, provide DES with proof that taxes have been paid on the correct wages in those other state(s).

When calculating excess wages, use the wages from each state up to the taxable wage base. For a multi-state taxable wage base it is recommended to file online and allow NCSUITS to calculate the excess wages. NCSUITS has the capability to accept out-of-state wages and will calculate the excess wages.

If you have closed, suspended or sold your business, you may not have to file a Quarterly Tax and Wage Report.

You must notify DES if you have closed, suspended or sold your business. This process may be completed online in NCSUITS under Account Maintenance à Inactivate Account.

If you have no wages to report but you are continuing business, you must file a Zero report. Call the UI Employer Support Center at 866-278-3822, if you have questions.

Employers must maintain records for each person they employ (including corporate officers). These records must show and may include:

1. The employee's full name and Social Security number or ITIN (Individual Taxpayer Identification Number).
2. The beginning and ending dates worked.
3. The amount of wages paid.
4. All other payments made to the employee including vacation pay, tips, and the reasonable value of board and lodging or other remuneration for services.
5. Copies of other tax reports such as federal income tax returns and payroll tax reports including 941s, 943s, 944s and 940s.
6. Records of cash disbursements or other payments to individuals.

Records must be kept for at least five (5) years and be available for inspection by DES authorized staff.