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How Will Unemployment Insurance (UI) Tax Increases Impact Your Business?

The NC Chamber in association with Headway Workforce Solutions is pleased to provide members with a Free online UI Tax Calculator. This simple and intuitive tool enables businesses to quickly play "what if" scenarios and see how potential North Carolina UI tax rate increases could impact their employment costs and ability to hire new employees.

Simply enter your total number of employees (state UI rates and taxes apply to your covered workers receiving payroll on their first $20,400 of wages paid during the year) and then select current and anticipated UI tax rates to learn the potential impact^†^† to your bottom line.

Number of Employees^†:
^†Please enter a count of 10 to 100,000 employees that received payroll
Current UI Tax Rate: (Find an example of your tax rate from NCUI101 Form)	%
This "Tax Rate" is on your NCUI 101 Form and includes a 20% State Reserve (SR) Tax**. Your total Composite "Tax Rate" rate typically ranges from 0.0% - 6.84%
Anticipated UI Tax Rate Increase: ("What if" Tax Increase Scenarios)
Enter an estimate or anticipated percentage increase to your current UI Tax Rate. A percentage increase is dependent on various factors including but not limited to: the percentage change from your most recent UI tax rate from the previous rate, the total amount of taxable payroll from the last three years, applicable benefit changes to your account and rate schedule during this time. Approximately 49,000 employers experienced an increase in their 2012 NC UI rates.
New Anticipated UI Tax Rate:

Current UI Taxes:
Anticipated UI Taxes:
Annual UI Tax Increase:

Note: Assumes NC taxable wage base of $20,400 and other assumptions***
FUTA (Federal Unemployment Tax Act) rates are not included in the UI Tax Calculator. However, North Carolina employers have experienced a net increase in their FUTA taxes of $21/employee in 2012. To learn more about current FUTA rates, credits and impact, please visit the NC Chamber's Overview of NC’s Unemployment Insurance. To learn about solution options that may reduce or control UI burdens, please visit Headway Workforce Solutions.
^**North Carolina requires a reserve unemployment insurance fund of $163,349,00; until that amount is reached, 20% additional taxes on a company's UI will be imposed

^{*NC DES (Division of Employment Security)

††}Disclaimer and Assumptions***: UI Tax Calculator is purely designed for illustrative purposes to give site users an idea as to how unemployment tax rates may or may not impact an entity’s taxes and UI tax costs and burdens. Assumptions, generalizations and estimates are included and the NC Chamber, neither directly or indirectly, implies that these rates or outcomes will or will not occur as well as to whether they are accurate or not. Base assumptions with the UI Tax Calculator include that all employees will reach the $20,400 wage base threshold with may or may not occur. No representations, claims or warranties are made by the NC Chamber or Headway Workforce Solutions with the use of or results from any calculations or assumptions made from this information or with the UI Tax Calculator. Please consider consulting with your tax advisor, accountant or attorney to learn about how this specifically may or may not impact your organization.