Deduction-statement requirement
North Carolina requires an itemized statement of deductions for each pay period in which deductions are made from an employee’s wages.
See details →NORTH CAROLINA PAYROLL RESOURCES · NC · REVIEWED 2026-10-03
North Carolina Payroll &
Pay Statement Guide
Review North Carolina deduction-statement requirements, current withholding tables, unemployment-insurance guidance, and workers’ compensation rules for payroll preparation. Run payroll for a small team and get employee statements from every calculated run.
Conditional deduction statementAn itemized statement is required for each pay period in which deductions are made.
Official-source guideBased on North Carolina wage, tax, unemployment, and workers’ compensation sources.
Reviewed 2026-10-03Checked against current official sources.
AT A GLANCE
What distinguishes North Carolina pay-period records
North Carolina’s Wage and Hour Act focuses its employee-facing statement rule on deductions. Employers must give an itemized statement of deductions for each pay period in which deductions are made, while also providing written wage information at hire and advance notice of changes to promised wages. Separate payroll obligations include North Carolina income-tax withholding, unemployment insurance, and workers’ compensation coverage.
State income-tax withholding
The 2026 North Carolina withholding publication reflects a 3.99% individual income-tax rate and provides payroll-period tables, a percentage method, and an annualized-wages method.
View 2026 NC-30 →Unemployment insurance (UI)
North Carolina’s 2026 beginning-employer UI rate is 1.0% and the taxable wage base is $34,200 per employee. Experienced-employer rates vary under the state’s experience-rating system.
View UI information →Workers’ compensation
In general, North Carolina businesses with three or more regularly employed workers must maintain workers’ compensation coverage or qualify as self-insured, subject to statutory exceptions. Radiation-related employment has a one-employee threshold.
View official guidance →STATE PAYROLL OVERVIEW
What makes North Carolina different from other pay-statement jurisdictions
North Carolina does not frame its statewide rule as a comprehensive every-pay-period pay-stub statute. Instead, G.S. 95-25.13 requires an itemized statement of deductions for each pay period in which deductions are made. The same statute also requires employers to notify employees in writing at hire of promised wages and the day and place for payment and to provide advance written notice of changes in promised wages.
That distinction matters when designing the payroll record. The legal trigger reviewed here is the deduction statement, but a complete earnings record can still make gross pay, hours, taxes, deductions, and net pay easier for an employer, employee, or bookkeeper to review.
North Carolina also broadly preempts local governments from imposing their own employer requirements concerning compensation, wages, hours, benefits, leave, and related subjects, subject to listed statutory exceptions. This makes statewide rules especially important across Charlotte, Raleigh, Greensboro, Durham, and other North Carolina communities.
PAYROLL REQUIREMENTS CHECKLIST
The North Carolina requirements checklist
Use this checklist to understand North Carolina’s deduction-statement rule, wage-notice requirements, and separate payroll obligations.
When a statement is required
Furnish each employee with an itemized statement of deductions for each pay period in which deductions are made from the employee’s wages.
Information to include
The specific state requirement in G.S. 95-25.13 is an itemized statement of deductions. A complete payroll record may also show earnings, taxes, hours, rates, net pay, and other information needed to explain the pay period.
Wage notices
At hire, notify the employee in writing of promised wages and the day and place for payment. Give written notice at least one pay period before a reduction or other change in promised wages, except that retroactive increases are permitted without that advance notice.
Other employer obligations
Review North Carolina income-tax withholding, unemployment insurance, workers’ compensation coverage, and other state or federal requirements that apply to the employer and employee.
PAYROLL RECORDS IN PRACTICE
How North Carolina treats payroll records after payday
Give the required deduction statement
When deductions are made, provide the employee with the itemized deduction statement required for that pay period. Keep the statement consistent with the payroll calculation and underlying authorization or legal basis for each deduction.
Retain payroll records
North Carolina Department of Labor guidance states that required wage-and-hour records generally must be kept for at least three years. Employers should retain the underlying wage, hour, deduction, and payment information needed to support the payroll record and any applicable federal requirements.
USE THE CURRENT NORTH CAROLINA NC-30 TABLES
Use the 2026 North Carolina withholding methods for the actual pay period
North Carolina’s 2026 NC-30 publication states that the individual income-tax rate for tax year 2026 is 3.99% and incorporates that change into the withholding tables and computations. Employers use the employee’s North Carolina withholding certificate together with the appropriate payroll-period table, percentage method, or annualized-wages method.
2026 NC-30 Withholding Tables and Instructions
Use the current North Carolina publication for payroll-period tables, withholding methods, employer duties, and wage-payment withholding guidance.
View 2026 NC-30 →North Carolina withholding forms
Access current NC-4 employee certificates, withholding returns, annual reconciliation resources, and related employer forms.
View withholding forms →LOCAL CONSIDERATIONS
Why statewide wage rules are the starting point in Charlotte, Raleigh, Greensboro, and Durham
North Carolina law broadly preempts local governments from regulating employer compensation, wage levels, hours, payment of earned wages, benefits, leave, and related workforce subjects covered by the Wage and Hour Act, subject to specific statutory exceptions. For most private-employer payroll questions in major North Carolina cities, the state and federal rules are therefore the starting point rather than a separate city wage code.
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CharlotteUse North Carolina’s statewide wage-and-hour framework for private-employer pay requirements, while separately confirming any local business licensing, tax, or operational obligations that fall outside the state preemption provision.
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RaleighState wage, deduction, withholding, unemployment, and workers’ compensation rules form the core payroll framework. Do not assume a separate Raleigh private-employer wage mandate applies without verifying a specific authority outside the preempted subjects.
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Greensboro and DurhamThe same statewide baseline applies to private-employer wage-and-hour subjects covered by G.S. 95-25.1. Local governments may still regulate their own employees and act in the other circumstances expressly excepted by the statute.
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Statutory preemptionG.S. 95-25.1 expressly preempts local requirements concerning compensation, wages, hours, earned-wage payment, benefits, leave, and related workforce matters, while listing exceptions such as local-government employees and certain economic-development programs.Official link
A SOURCE-BACKED WORKFLOW
A source-backed workflow for North Carolina payroll records
1Confirm wage terms and employee informationStart with the promised wage, pay schedule, employee details, and any current written wage notices or changes.›
2Enter earnings and deductionsAdd the pay period, hours or salary information, earnings, withholding setup, and each deduction that will affect the employee’s wages.›
3Review calculationsReview gross pay, federal and North Carolina withholding, deductions, net pay, and the support for each deduction before completing the Pay Run.›
4Generate the recordsComplete the Pay Run and generate an employee record that clearly itemizes deductions when the North Carolina deduction-statement rule applies.›
5Retain supporting payroll recordsKeep the wage, hour, deduction, and payment information needed to support the payroll and the employer’s applicable state and federal recordkeeping duties.›
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OFFICIAL NORTH CAROLINA SOURCES USED FOR THIS PAGE
Official North Carolina sources used for this page
This guidance is based primarily on North Carolina statutes and government agency resources. Wage rules, tax tables, unemployment rates, and coverage requirements can change, so recheck the applicable source before acting.
01
N.C. General Statutes § 95-25.13
Wage notices and the itemized deduction-statement requirement for pay periods in which deductions are made.
02
North Carolina Department of Revenue · 2026 NC-30
Current withholding tables, 3.99% tax-year rate information, payroll methods, and employer withholding instructions.
03
N.C. Division of Employment Security · Tax Rate Information
2026 beginning-employer UI rate, experience-rating information, and $34,200 taxable wage base.
04
N.C. Industrial Commission · Employers
Workers’ compensation coverage thresholds, employee-count rules, and employer coverage guidance.
05
N.C. General Statutes § 95-25.1
State preemption of local employer requirements concerning compensation, wages, hours, benefits, leave, and related subjects, with statutory exceptions.
RESEARCH & REVIEW
Built from primary sources. Reviewed for accuracy.
This page is built from primary North Carolina statutes and state-government sources and is periodically reviewed against current agency guidance. We use official wage, tax, unemployment, workers’ compensation, and legislative resources whenever available.
FREQUENTLY ASKED QUESTIONS
North Carolina pay-statement FAQ
Does North Carolina require pay stubs?
North Carolina specifically requires an itemized statement of deductions for each pay period in which deductions are made. The statute reviewed here does not frame that rule as a comprehensive universal pay-stub format for every pay period regardless of deductions.
What information must North Carolina provide when deductions are made?
G.S. 95-25.13 requires an itemized statement of deductions made from the employee’s wages for each pay period in which those deductions are made.
Does North Carolina require wage information at hire?
Yes. Employers must notify employees in writing at the time of hiring of the promised wages and the day and place for payment. Employees must also receive advance written notice of changes in promised wages, subject to the statute’s rule allowing retroactive increases.
What North Carolina withholding rate applies for 2026?
The 2026 NC-30 publication states that the individual income-tax rate for tax year 2026 is 3.99%. Employers should calculate withholding using the current state tables or permitted method together with the employee’s withholding certificate.
What is North Carolina’s 2026 unemployment-insurance rate for a beginning employer?
The standard beginning-employer UI rate is 1.0% for 2026, and the taxable wage base is $34,200 per employee. Experienced-employer rates can differ.
When is workers’ compensation required in North Carolina?
In general, a business with three or more employees regularly employed is covered by the Workers’ Compensation Act and must obtain insurance or qualify as self-insured, subject to statutory exemptions. Radiation-related employment has a one-employee coverage threshold.
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Use accurate records, review the preview, and keep the supporting evidence.
Prepare a North Carolina Pay Run, review the calculations and records before completion, and keep the applicable North Carolina sources with your payroll workflow.