[US] COVID-19 North Carolina Unemployment Insurance Tax Credit for Q2 2020

The Governor of North Carolina passed a relief bill that allows all employers who paid their 1Q 2020 North Carolina State Unemployment Insurance tax payment timely on or before April 30, 2020 to get a credit equal to their 1Q payment and have it applied towards their 2Q tax payment. This was passed on May 4, 2020.

Background

North Carolina requires employers to pay State Unemployment Insurance (UI) on employee wages. This is due on a quarterly basis, with the due date falling on the last day of the month following the end of the quarter. 

To provide assistance to businesses during the COVID-19 pandemic, Governor Roy Cooper introduced two bills into law: 

Senate Bill 704 dictates that businesses may be eligible for a credit on your State UI payment for the second quarter of 2020. 

Credit criteria

You must have made your State UI payment and filing for the first quarter of 2020 (January 1 - March 31, 2020) on time (either on or before the due date of April 30, 2020) to be eligible for this credit. 

The credit is equal to the State UI contribution that was payable on your first quarter report. 

How the credit is applied

The tax credit will first be applied toward your second quarter State UI balance payable (filing and payment due July 31, 2020).
If your State UI liability payable is less than what you had paid for the first quarter, the excess credit amount will be considered an overpayment and will be refunded. 

Was this article helpful?
0 out of 0 found this helpful