North Carolina is known as the “Tar Heel State” because of its historical production of tar, pitch, and turpentine from its vast pine forests.
Payroll and Benefits Guide - United States - North Carolina
Fun Facts
North Carolina is home to the Great Smoky Mountains National Park, which is the most visited national park in the United States.
The Pepsi-Cola beverage was invented and first served in New Bern, North Carolina, in 1898.
North Carolina is home to the NASCAR Hall of Fame, located in Charlotte, which honors the history and heritage of NASCAR.
The state is famous for its barbecue.
The “Lost Colony” of Roanoke Island, established in 1587, is considered the first English settlement in North America.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| FICA Social Security | 6.20% |
| FICA Medicare | 1.45% |
| (Additional tax on earnings over 200,000 USD | 0.90% |
Employer Payroll Tax
| Contribution Type | Rate |
| Unemployment Insurance | 0.06% – 5.76% |
| Unemployment- New Employer | 1.00% |
| FICA Social Security | 6.20% |
| FICA Medicare | 1.45% |
| FUTA | 0.60-6.00% |
Payroll
Payroll Cycle
In North Carolina, employees are generally paid monthly or semi-monthly.
13th Salary
There is no legislation for 13th-month payments in North Carolina.
Work Hours and Week
In North Carolina, the working week is a maximum of 40 hours per week, 8 hours per day.
Overtime
North Carolina adheres to the Fair Labour Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay.
Leave
Paid Time Off
North Carolina does not have any state statute governing the amount and payment of vacation time; however, it is common for employers to decide whether to offer paid or unpaid vacation leave.
Public Holidays
There are 14 official holidays.
Sick Days
It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons
Maternity Leave
Maternity leave may fall under Family and Medical Leave Act (FMLA)
Paternity Leave
Paternity leave may fall under FMLA
Parental Leave
Paternity leave may fall under FMLA
Termination
Termination Process
Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.”
Notice Period
In North Carolina, most employees are employed “at-will,” and either party can terminate the employment relationship without notice.
Severance Pay
Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees.
Probation Period
Probation Period
No legal provision governs a formal “trial /probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.
VISA
VISA
Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.
VAT
North Carolina has a minimum combined Sales Tax Rate of 6.97% (State tax at 4.75% and Local tax at 2.22% USD)