North Carolina Paycheck Calculator

Use North Carolina Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

North Carolina Payroll Taxes

In addition to Social Security and Medicare, North Carolina assesses state income taxes, as well as state unemployment taxes, as per SUTA. 

State and Local Income Tax

North Carolina has a consistent income tax rate system, with a rate of 4.99% for the tax year of 2022. Employers are required to withhold state income taxes from employee wages. 

For more information on North Carolina’s tax rate, check out the state’s Tax Rate Schedules.

State Unemployment Tax (SUTA)

State unemployment tax is an employer-paid tax and thus not withheld from employees.  As of 2022, SUTA tax rates in North Carolina range from 0.06% to 5.76% for established businesses. 

The rate for new businesses is 1%. The current taxable wage base in North Carolina is $28,000.

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in North Carolina, you’ll need to register for state withholdings. First you’ll need to acquire a Tax Withholding Identification Number from the Department of Revenue. 

If you submit your application online, you’ll instantly get your new tax withholding number. Applications filed by mail take up to four weeks to process. 

Once you have your withholding ID, the next step is to register your business for unemployment taxes. To begin the registration process, visit the Department of Commerce, Division of Employment Security’s business unemployment tax registration page. 

After you register, you’ll be provided with an unemployment insurance number, or an Employer Tax Account Number. 

For more information on payroll taxes, visit the Department of Revenue’s information page.

Using a Payroll Tax Service

In North Carolina, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!