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Payroll and Benefits Guide United States – North Carolina

Last updated: Mar 03, 2026

Currency
United States Dollar (USD)
Employer Taxes
9.31%- 20.41%
Payroll Frequency
Monthly/Semi-monthly
Employee Costs
8.55%
Capital
Raleigh
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Payroll Contributions
0.06% – 5.76% State Unemployment Insurance (SUI), applied on the first 32,600 USD of each employee’s wages.The rates are determined based on the employer’s experience with unemployment claims and contributions.
1.00% State Unemployment Insurance – New Employer, applied on the first 32,600 USD of each employee’s wages.
6.20% Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year.
1.45% Federal Insurance Contributions Act (FICA)  – Medicare. An additional 0.9% should be withheld from employees earning above 200,000 USD per year.
0.60% – 6.00% Federal Unemployment Tax Act (FUTA), applied on salary up to 7,000 USD per year.

Employers who pay their state unemployment tax in full and on time are eligible for a 5.4% tax credit, reducing the FUTA rate to 0.6%.

9.31%- 20.41% Total Employment Cost

 

Employee Payroll Contributions
6.20% Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year.
1.45% Federal Insurance Contributions Act (FICA)  – Medicare.An additional 0.9% should be withheld from employees earning above 200,000 USD per year.
7.65% – 8.55%    Total Employee Cost
State Income Tax
4.25% A flat rate for singles and married couples
Federal Employee Income Tax  Annual
Federal Tax – Singles
10.00% Up to 11,925 USD
12.00% 11,925 – 48,475 USD
22.00% 448,475 – 103,350 USD
24.00% 103,350 – 197,300 USD
32.00% 197,300 – 250,525 USD
35.00% 250,525 – 626,350 USD
37.00% Above 626,350 USD
Federal Tax – Married, Joint Filing
0.00% Up to 23,850 USD
12.00% 23,850 – 96,950 USD
22.00% 96,950 – 206,700 USD
24.00% 206,700 – 394,600 USD
32.00% 394,600 – 501,050 USD
35.00% 501,050 – 751,600 USD
37.00% Above 751,600 USD
Federal Tax – Heads of Household
10.00% Up to 17,000 USD
12.00% 17,000 – 64,850 USD
22.00% 64,850 – 103,350 USD
24.00% 103,350 – 197,300 USD
32.00% 197,300 – 250,500 USD
35.00% 250,500 – 626,350 USD
37.00% Above 626,350 USD
Standard Deduction and Personal Exemption
15,000 USD Single
30,000 USD Married Filing Jointly
22,500 USD Head of Household

Minimum Wage

General

North Carolina has a state minimum wage law that sets its minimum wage at 7.25 USD, the same as the Federal minimum wage.

There are also other minimum requirements:

Minimum cash wage (tipped employee)                                     2.13 USD

Maximum tip credit                                                                       5.12 USD

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.

Working Hours

General

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 Labor 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.

If employees are scheduled to work on weekends or rest days, no additional payment is required.

However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

Leave

Annual Leave (vacation)

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.

This must comply with employment law and must be stipulated in the collective bargaining agreements.

Public Holidays

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Martin Luther King, Jr. Birthday Standard holiday
3 April 2026 Friday Good Friday Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
3 July 2026 Friday Independence Day (Observed) Standard holiday
7 September 2026 Monday Labor Day Standard holiday
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
27 November 2026 Friday Day after Thanksgiving
24 December 2026 Thursday Christmas Eve
25 December 2026 Friday Christmas Day Standard holiday
28 December 2026 Monday Christmas Holiday (Observed)

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, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA-eligible employees are entitled to:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave for a serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Or

  • 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

Maternity Leave

See Sick Leave above.

The Federal FMLA provides qualified employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons, including maternity leave.

Paternity Leave

See Sick Leave above.

The Federal FMLA provides qualified employees with up to 12 weeks of unpaid job-protected leave per year for certain family and medical reasons, including paternity leave.

Parental Leave

See Sick Leave above.

The Federal FMLA provides qualified employees with up to 12 weeks of unpaid job-protected leave per year for certain family and medical reasons, including parental leave.

In North Carolina, there is an additional law for parental involvement leave, which entitles the parents/carers to up to four hours of unpaid leave to attend a child’s school activities.

Other Leave

Jury Service – North Carolina law states that all employers must provide their full-time employees job-protected but unpaid time off from work to perform their duty as jurors or as a witness in a case, responding to a subpoena; or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.

Voting leave – North Carolina law requires all employers to grant their employees who are registered to vote up to four hours of paid leave to vote in any municipal, county, state, federal primary, or general election.

In addition to the federal law USERRA, North Carolina law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.

It also entitles members of the National Guard or the U.S. armed forces to attend military training for up to 15 days of unpaid leave per year.

These members also have reinstatement rights to their former positions if they are still qualified and have satisfactorily completed the training.

North Carolina law also provides reemployment rights for members of the North Carolina National Guard (or of another state) who are honorably discharged, discrimination protections for members of the National Guard, and leave for members of the U.S. military for emergency military duty.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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.”

This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds.

In such cases, the parties negotiate the foundations for a “just cause” termination case by case.

Salary payment interval / date Final payment on termination Bank account/payment-method requirement
Employers must pay wages on a regularly scheduled payday, with pay periods that may be daily, weekly, bi-weekly, semi-monthly or monthly. When employment is discontinued for any reason (voluntary or involuntary), the employer must pay all wages due on or before the next regular payday. Wages may be paid by cash, check, direct deposit or payroll card (with conditions) and payment via bank account is permissible if the employee chooses the financial institution and withdrawal of full wages is possible.

Notice Period

In North Carolina, most employees are employed “at will,” and either party can terminate the employment relationship without notice.

An employer’s policy or employee contract governs whether earned or unused vacation is paid on separation.

Still, generally, employers will pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation; there is no official notice period. Still, in general practice, two weeks’ notice is a minimum requirement.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties.

Many employers choose to offer severance payment linked to the employee’s length of service.

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 employment period of 90 days.

Minimal Statutory Termination Costs 

Some states require PTO balances to be paid out during termination, also any bonuses or commissions that were promised in the employment contract

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.

An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).

To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request. The types of visas include:

  • H-1B – for applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics
  • E-2 – for those with advanced degrees or exceptional ability
  • E-3 – for skilled workers and professionals, as well as unskilled workers
  • E-4 – members of certain immigrant groups
  • E-5 – immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States.

The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorized to work in the United States.

VAT

General

North Carolina has a State sales tax of 4.75%. Local governments can add up to 2.75% in additional taxes.

Stay up to date on payroll & employment law changes

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
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Payroll and Benefits Guide
in United States – North Carolina

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

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Public Holidays Calendar

United States – North Carolina
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Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Martin Luther King, Jr. Birthday Standard holiday
3 April 2026 Friday Good Friday Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
3 July 2026 Friday Independence Day (Observed) Standard holiday
7 September 2026 Monday Labor Day Standard holiday
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
27 November 2026 Friday Day after Thanksgiving
24 December 2026 Thursday Christmas Eve
25 December 2026 Friday Christmas Day Standard holiday
28 December 2026 Monday Christmas Holiday (Observed)