Payroll and Benefits Guide - United States - North Carolina

United States - North Carolina
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Currency

United States Dollar (USD)
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Capital

Raleigh
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Employer Taxes

9.31% – 20.41%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

North Carolina is known as the “Tar Heel State” because of its historical production of tar, pitch, and turpentine from its vast pine forests.

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.

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Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
(Additional tax on earnings over 200,000 USD0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.06% – 5.76%
Unemployment- New Employer1.00%
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60-6.00%

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.
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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)