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Worker’s Compensation & Unemployment Insurance

Workers’ Compensation

North Carolina workers’ compensation legislation and insurance rates are generally more fiscally responsible and cost employers less money than in other states, according to the National Council on Compensation Insurance. Workers compensation legislation in North Carolina includes the following provisions that could contribute to substantial labor cost savings for employers:

• Self-insurance is permitted.
• Insurance rates lower than the standard industry rates are permitted for firms that qualify.
• Clear-cut accident on the job is a condition for benefit compensation.
• Free accident-prevention workshops designed for each product manufactured are offered.

Examples of workers’ compensation insurance assigned risk rates (2003)

For additional information, contact the following agencies:

NC Industrial Commission

www.comp.state.nc.us

NC Rate Bureau

www.ncrb.org

Unemployment Insurance

The average unemployment tax rate for North Carolina employers is 0.4%, the lowest among the Southeastern states and among the lowest in the country. North Carolina offers new employers a tax rate of 1.2% for the first two years of operation. Those employers who avoid laying off workers and maintain a positive “experience rating” can see their tax rates decline further, to a minimum rate of 0.0%. Added to each state unemployment insurance tax rate nationwide, there is the federal unemployment insurance tax rate of 6.2% per employee, with an allowable credit of 5.4% if paying into a state unemployment program.

For more information about the Unemployment Insurance program in North Carolina, consult the North Carolina Employment Security Commission, Unemployment Insurance Division. www.ncesc.com