NC SUI Tax Problem

As you may already know the NC Department of Commerce has had a difficult time posting State Unemployment Insurance (SUI) Tax payments.

What happened?

Late in 2023, the NC Department of Commerce made a complete change with their NC SUI Tax Filing and Payment System.  For lack of a better term, it has been a complete debacle on their end.  Even though everything has been filed and paid timely, their system cannot allocate the payments correctly.

Because of their issues, employers are receiving Tax Due notices for both the first and second quarters of 2024.  These notices were generated automatically.

What does this mean?

When we file returns and make payments, the files we create must match certain specifications.  These specifications changed with their system update.  Our system programmers and tax team members have followed each and every direction provided by the NC Department of Commerce during this transition.  The files we submit to the state have the accurate information needed based on their guidance.

It appears that the specifications provided to us (and still listed on their website) are not correct.  This has affected not just us, but several other payroll/HR service providers, software vendors and accounting firms.

What now?

Unless they make the appropriate changes or inform us of the correct file structure, NC is going to have a difficult time applying the third quarter payments as well and will most likely generate more notices.

Please forward any tax notice you may receive to us right away.  Other than that, there is no additional action needed.  We have been in contact with NC and have filed formal protests on behalf of our clients.

We understand the frustration and inconvenience this has caused and appreciate your patience as we work to get this resolved.

If you have any questions, please contact your Payroll Specialist.