An employer is allowed a tax credit equal to the amount of Unemployment Insurance Fund contributions payable on the report filed by the employer on or before April 30, 2020. If an employer remitted the contributions payable with the report due on or before April 30, 2020, the credit will be applied to the contributions payable on the report due on or before July 31, 2020.
An employer must file the report to receive the credit. If the amount of the credit exceeds the amount of contributions due on the report, the excess credit amount is considered an overpayment and will be refunded. Some restrictions apply.
This credit is for all employers that file a State Unemployment Insurance (“SUI”) return and that are impacted by COVID-19 conditions as indicated below:
- An employer temporarily ceases operations due to COVID-19, preventing an individual from going to work.
- An employer reduces the hours of employment due to COVID-19.
- An individual has a current diagnosis of COVID-19.
- An individual is quarantined at the instruction of a health care provider or a local, state, or federal official.
The credit is based on wages paid after March 10, 2020, and SUI tax paid after March, and ends when the governor rescinds the state of emergency in North Carolina.
