Effective May 4, 2020, North Carolina’s Governor Roy Cooper approved State Bill 704, creating, among other items, an unemployment tax credit for all employers in the state (https://www.ncleg.gov/BillLookUp/2019/S704) . The UI credit is equal to the amount of contributions due for the first quarter of 2020, as reported to the agency no later than April 30, 2020. This UI credit covers the unemployment insurance contributions due to the agency only and will be applied to the contributions due to the agency for the second quarter 2020 – if the credit exceeds the contribution amount due for the quarter, the excess will be refunded to the employer, according to the measure. Please continue to follow CCC for updates on the tax impacts of the COVID-19 Virus on state agencies, unemployment tax rates, and State Trust Fund Balances.
