Are You Required to Pay Taxes?

Unemployment insurance tax is a tax on employer payrolls paid by employers from which unemployment benefits are paid to qualified unemployed workers.

You are required to pay taxes if you are:

  1. A general business employer with gross payroll of at least $1,500 in any calendar quarter or with at least one worker in 20 different weeks during a calendar year.
  2. An employer who acquires all or any portion of a liable business in North Carolina.
  3. An employer who voluntarily elects to become liable regardless of not meeting the required criteria.
  4. An employer subject to the Federal Unemployment Tax Act, 26 U.S.C. § 3301 et seq.
  5. A 501(c)(3) non-profit organization with at least four workers in 20 different calendar weeks during a calendar year.
  6. An employer with agricultural labor of 10 or more workers on any day during 20 different calendar weeks in a calendar year, or with $20,000 or more in gross payroll for any calendar quarter.
  7. An employer with domestic employment in a private home, college club, fraternity or sorority with a gross payroll of at least $1,000 in any calendar quarter.
  8. A state or local government agency or department.
  9. An employment service company that contracts to supply individuals to perform employment services for clients or customers.
  10. Any Indian Tribe as defined in the Federal Unemployment Tax Act.
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