North Carolina General Statutes
Article 2 - Contributions and Payments by Employers.
§ 96-9.3 - Determination of taxable wages.

96-9.3. Determination of taxable wages.
(a) Determination. - The Division must determine the taxable wages for each calendar year. An employer is not liable for contributions on wages paid to an employee in excess of taxable wages. The taxable wages of an employee is an amount equal to the greater of the following:
(1) The federal taxable wages set in section 3306 of the Code.
(2) Fifty percent (50%) of the average yearly insured wage, rounded to the nearest multiple of one hundred dollars ($100.00). The average yearly insured wage is the average weekly wage on the computation date multiplied by 52.
(b) Wages Included. - The following wages are included in determining whether the amount of wages paid to an individual in a single calendar year exceeds taxable wages:
(1) Wages paid to an individual in this State by an employer that made contributions in another state upon the wages paid to the individual because the work was performed in the other state.
(2) Wages paid by a successor employer to an individual when all of the following apply:
a. The individual was an employee of the predecessor and was taken over as an employee by the successor as a part of the organization acquired.
b. The predecessor employer paid contributions on the wages paid to the individual while in the predecessor's employ during the year of acquisition.
c. The account of the predecessor is transferred to the successor. (2013-2, s. 2(b); 2013-224, s. 19.)

Structure North Carolina General Statutes