Overview: When hiring employees in North Carolina, you must register for State Income Withholding Tax through the Department of Revenue (NCDOR) and State Unemployment Insurance (UI) Tax through the Division of Employment Security (DES). Both registrations are required for payroll compliance in the state.
Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.
Taxes You Must Register For:
North Carolina Withholding Income Tax
Registration Steps
1. Register for a Withholding Tax Account ID
Visit the NCDOR website
Click on the Taxes & Forms dropdown
Select Business Registration, then click Withholding
Click Next and enter required business information
Upon submission, your NC Withholding Account ID should be issued immediately
A tutorial on How to Register a Business is available.
2. Set Up Online Access via NCID
Go to the North Carolina eBusiness Center
Click Log In
Under the NCID login page, click Register
Choose Business as your user type
Create a username and password
An email with a verification code will be sent to complete your registration
Next Steps
Update your Buddy Punch account with your North Carolina Withholding Account ID. This number is required for all NCDOR-related interactions to ensure your payroll setup is compliant.
For assistance, contact NCDOR at 877-252-3052
North Carolina Unemployment Insurance (UI) Tax
Registration Steps
1. Register for a UI Employer Account Number
Visit the DES Employer Services Portal
Under the Employers dropdown, click Create or Update an Employer Account
Click the link here to access the employer registration application
Complete the application online
You will receive your Employer Account Number (EAN) and unemployment tax rate immediately
2. Set Up Online Access
Go to the DES website
Under Steps to Create an Online Account, click Click here
Select I am a Business/Remitter/Third Party user
Enter your 7-digit EAN twice and your 6-digit PIN
Create your sign-in credentials (username and password)
Enter a valid email address to receive an activation link
Follow the activation instructions in the email and log in to your DES account
Next Steps
Update your Buddy Punch account with your North Carolina Employer Account Number. This number is required for all interactions with DES and to ensure your unemployment reporting is accurate.
For assistance, contact DES at 919-707-1150