The North Carolina House of Representatives has passed House Bill 48, a measure backed by NCACPA that provides a tax credit for employers based on their Unemployment Insurance (UI) tax payments.
What This Means for Employers
If your business paid taxable wages in Q4 of 2024, you may be eligible for a tax credit equal to your UI tax payment made on or before January 31, 2025. This credit would be applied toward your April 30, 2025, UI tax payment. If the credit exceeds your liability, the excess will be refunded.
Higher Unemployment Benefits Also Included
HB 48 doesn’t just offer tax relief—it also increases the maximum weekly UI benefit from $350 to $450. The actual benefit amount for claimants will still be based on their earnings from the last two calculated quarters, with payments equaling half of their average weekly wages during that time.
What’s the Financial Impact?
According to the legislature’s Fiscal Review Division, this tax credit is expected to reduce employer payments by approximately $100 million. Despite this, the state’s Unemployment Trust Fund—currently at $5.2 billion—will continue to grow.
Legislative Status: What Happens Next?
The bill received overwhelming bipartisan support in the House. However, an amendment to raise the maximum weekly UI benefit to $600 was rejected along party lines.
HB 48 now heads to the Senate for further consideration.
Key Takeaways for CPAs
- Employers could see significant tax relief on their UI tax payments for Q4 2024.
- The maximum weekly UI benefit will increase to $450.
- The Unemployment Trust Fund remains strong, even with reduced tax revenue.
- The bill still needs Senate approval before becoming law.
NCACPA encourages its members in public and corporate accounting to share these updates with their clients and organizations to help them prepare for potential financial changes.
If you have questions about this issue or other policy matters, please contact NCACPA Vice President of Advocacy and Outreach Robert Broome, CAE