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Free North Carolina payroll tax
calculator (and NC tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

Our payroll calculator is here to make it easier for North Carolina employers to navigate payroll taxes. Simply enter wage and W-4 information for each employee and our calculator will take care of the rest.

Federal taxes for North Carolina employers

Regardless of whether your employee is paid on salary, hourly, or by other means, all federal payroll taxes are the same. To make things simple for you, all you need to do is remember these six aspects of federal payroll taxes:

  1. Calculate Gross Wages:
    • For all your hourly employees, multiply their hours worked by the pay rate. Don’t forget to increase the rate for any overtime hours.
    • For all your salaried employees, divide each employee’s annual salary by the number of pay periods you have.
  2. Pre-tax withholdings. Subtract any eligible retirement savings account, Flexible Spending Account, Health Savings Account, and other pre-tax withholdings.
  3. Federal Income Tax. The biggest tax there is. Rates range from 0% to 37%. We won’t get into all the finer details here. Tax bracket information can be found through IRS Publication 15-T.
  4. FICA Taxes:
    • Social Security Tax. Subtract and match 6.2% of each employee’s taxable wages until they have earned $168,600 (2024 tax year) for that calendar year. Any wages above $168,600 are exempt from the Social Security Tax.
    • Medicare Tax. Subtract and match 1.45% of each employee’s taxable wages until they have earned $200,000. Once an employee has surpassed an annual earning of $200,000, he or she has to pay an additional 0.9% tax called…wait for it…Additional Medicare Tax (super original, we know). Fortunately for you, only employees are responsible for this tax on higher wage earners.
  5. FUTA Unemployment Tax. Employees are not responsible for paying this tax, so this one is all on you. Employers have to pay 6% of the first $7,000 each employee earns per year. The good news is that you’re eligible to get a credit of up to 5.4%, making your effective FUTA tax rate 0.6% if you pay your state unemployment tax on time and in full. All the details on the FUTA credit reduction can be found on this IRS website.
  6. Post-Tax Withholdings. The final deduction is for any special responsibilities an employee may have, such as court-ordered wage garnishments and child support.

 

If you would like a more detailed explanation of federal payroll taxes, head on over to our step-by-step guide for additional information.

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North Carolina payroll taxes for 2024

North Carolina payroll taxes are as easy as a walk along the outer banks. There is a flat income tax rate of 4.5%, which means no matter who you are or how much you make, this is the rate that will be deducted. Plus, to make things even breezier, there are no local income taxes in North Carolina

North Carolina state unemployment insurance (SUI)

  • Unemployment insurance rates vary based on year and are usually determined by an employer’s reserve ratio percentage (ERRP), which is the employer’s 2024 reserve ratio multiplied by 0.68.
  • Rates range from 0.06% to 5.76%.
  • All new employers should use a flat rate of 1.0%.
  • The taxable wage base for 2024 is $31,400, up from $29,600 in 2023.

 

For more information, the North Carolina Division of Employment Security lists the 2024 tax rates plus answers to some frequently asked questions.

Staying compliant

North Carolina is one the states where having a workers’ comp is necessary for most employers. Learn how policies work, how this type of coverage safeguards employees from workplace injuries and illnesses, and can protect companies from litigation in our guide to North Carolina workers’ compensation.

Write your paychecks

It’s go time. Calculate each employee’s pay, factor in all deductions and withholding requirements, then pay your employee’s the check they deserve. Make sure you’ve set aside any contributions your company owes and soon you’ll be soaring towards the golden North Carolina sun! Federal tax filings are due quarterly by filing Form 941. There’s also the Form 940 for FUTA annual filings. but for most North Carolina employers, deposits must be made on an ongoing basis via the EFTPS payment system. You can find employment tax due dates from the IRS here.

Additional NC payroll tax resources

If you want to learn more about North Carolina Payroll Taxes, we think you should check out the Department of Revenue website, particularly these two sections:

 

Register Your Business and Pay Online

 

Or if you have any questions, call them at (877) 252-3052

More helpful payroll calculators

Employers in North Carolina can quickly calculate gross pay, net pay, and deductions for their employees with the calculator at the top of this page (and feel confident when cutting paychecks). But occasionally, companies have situations that arise that require a bit more number crunching. For example, does your company occasionally award bonuses to high-performing employees? Remember that these payments are considered supplemental wages in Uncle Sam’s eyes and thus subject to tax withholding. Furthermore, as employees come and go, you may need to figure out what their final paycheck will be. So, if you can use a little more help managing the math, check out some of the calculators listed below.

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