Unemployment Insurance tax is a tax on employer payrolls paid by employers and used to provide funds from which unemployment benefits are paid to qualified unemployed workers. Unemployment tax is not deducted from employee wages.
Unemployment tax payments made by employers are transferred to the Unemployment Insurance Trust Fund in Washington. Employers receive credit for tax payments that are posted to an experience rating account.
These credits are used to determine the rate schedule from which the tax rates for contributory North Carolina employers are assigned on an annual basis. Each year a prorated share of the interest earned on this trust fund is added back to the experience rating account of each North Carolina employer having a credit balance.
Get Help from an Experienced Employment Law Attorney
Have you been discriminated against by a potential or current employer -- as a job applicant or current employee? To best protect your legal rights you should discuss your situation with an employment lawyer. Meet with a local employment for employees attorney sooner rather than later to protect your rights.