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2021 COVID-19 Relief for Employers – NC Unemployment Tax Rate Reduction

ATTENTION BUSINESS OWNERS!!! Have you received your UPDATED Unemployment Tax Rate Assignment RETROACTIVE to January 1, 2021?

Under N.C. Senate Bill 114, the employer base contribution rate to the Unemployment Insurance Trust Fund for 2021 has been reduced from 2.4% to 1.9%. The base contribution rate is one of the factors used to calculate an employer’s unemployment insurance tax rate for the year.

This may result in an unemployment insurance tax rate reduction for active,  experience-rated  employers. 

  • Employers who are affected by this change will receive a Revised 2021 Tax Rate Notice from the Division of Employment Security (DES) by mail. Employers should take this opportunity to verify that the mailing address on their DES account is accurate to ensure prompt delivery of the notice. 
  • Employers whose tax rate for 2021 is already at the minimum rate allowed by law (0.06%) will not be affected by this change. 
  • Employers whose tax rate for 2021 is already at the maximum rate allowed by law (5.76%) may or may not receive a rate reduction, depending on individual recalculation results. 
  • Employers who have the standard new employer rate of 1.00% are not affected by this change, as they are not yet experience rated.

Submitted by: Amy McGhinnis