New North Carolina employers must: (1) obtain a federal EIN from the IRS, (2) register for a state tax account with the North Carolina Department of Revenue for income tax withholding, (3) register for an SUI account with the North Carolina Division of Employment Security, and (4) obtain workers’ compensation insurance. Complete all registrations before running your first payroll.
Table of Contents
When you hire your first employee in North Carolina, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.
Registration Overview
Here’s a checklist of what every new North Carolina employer needs:
- ☑ Federal Employer Identification Number (EIN)
- ☑ North Carolina state tax registration (North Carolina Department of Revenue)
- ☑ North Carolina SUI account (North Carolina Division of Employment Security)
- ☑ Workers’ compensation insurance
- ☑ New hire reporting setup
- ☑ Payroll system or software
Step 1: Get Your Federal EIN
Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.
Apply online at IRS.gov/EIN. It’s free and you receive your EIN immediately.
Step 2: Register with North Carolina Department of Revenue
Visit the North Carolina Department of Revenue website to register for a state employer tax account. This allows you to withhold North Carolina state income tax from employee paychecks and remit it to the state.
💼 From the Payroll Desk
Don’t wait until your first payroll to register. State registrations can take days or weeks to process. Start the registration process as soon as you know you’ll be hiring.
Step 3: Register for SUI
Register for a State Unemployment Insurance account through the North Carolina Division of Employment Security. You’ll be assigned:
- An employer account number
- Your initial SUI rate (1.0% for new employers)
- Quarterly filing requirements
SUI is an employer-paid tax on the first $31,400 of each employee’s wages. See our North Carolina SUI Rates 2026 guide for details.
Step 4: Workers’ Compensation Insurance
Most North Carolina employers are required to carry workers’ compensation insurance, which covers employees who are injured on the job. Requirements vary by state — some states require coverage from the first employee, while others have minimum thresholds.
You can obtain workers’ comp through private insurance carriers or, in some states, through a state fund. Compare quotes from multiple carriers to find the best rate for your industry classification.
Starting a Business?
If you’re also forming your business entity, consider ($39 + state fee) or for LLC/corporation formation.
Step 5: New Hire Reporting
Federal and North Carolina law require you to report every new hire within 20 days of their start date. This information is used to enforce child support orders and prevent fraud.
Most states allow online reporting through their new hire reporting website. See our New Hire Reporting guide for details.
Step 6: Set Up Payroll
With all registrations complete, you’re ready to set up your payroll system. For North Carolina small businesses, we recommend:
- — Best overall for small businesses. Automated tax filings, easy setup, starting at $40/mo + $6/employee.
- — Best for growing teams with dedicated support needs.
- — Best if you already use QuickBooks for accounting.
Start running payroll in North Carolina today →
Frequently Asked Questions
How do I register as a new employer in North Carolina?
Register for a state tax ID with the North Carolina Department of Revenue and for an SUI account with the North Carolina Division of Employment Security. You'll also need a federal EIN from the IRS.
When must I register as an employer in North Carolina?
You must register as soon as you hire your first employee or, in some cases, when you pay wages above a threshold in a calendar quarter. Register before your first payroll.
Do I need workers' compensation in North Carolina?
Most North Carolina employers are required to carry workers' compensation insurance. Check with the North Carolina Division of Employment Security or your state's workers' compensation board for specific requirements.
What is an EIN and how do I get one?
An Employer Identification Number (EIN) is a federal tax ID from the IRS. Apply online at irs.gov/ein — it's free and you receive it immediately.
Simplify North Carolina Payroll
Gusto automatically calculates, withholds, and deposits both federal and North Carolina payroll taxes. It files your quarterly and annual returns, too. Trusted by over 300,000 small businesses.
Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of February 2026 and may not reflect recent changes in federal or North Carolina state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with North Carolina law before making payroll or compliance decisions for your business.