GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2001-207
AN ACT RELATING TO THE ANNUAL FILING OF WAGE REPORTS BY DOMESTIC SERVICE EMPLOYErs and to the late filing and payment penalties under the employment security laws of North carolina.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 96-9 (a)(8) reads as rewritten:
"(8) An employer of
domestic service employees as defined by the Internal Revenue Code who
has filed reports with the Commission for at least three consecutive years and
has not been liable for quarterly contributions under subdivision (6) of this
subsection during the preceding calendar year may be given permission by
the Chair of the Commission to file reports once a year on or before the last
day of the month following the close of the calendar year in which the wages
are paid. Permission to file a report annually may be revoked if the employer
is found liable to the Commission for quarterly contributions under subdivision
(6) of this subsection.
An employer who is granted permission to file annual reports must comply
with 20 C.F.R. § 603.21 so that reporting of wages and employment status are as
effective and timely as the quarterly wage reporting system. This compliance
includes the reporting of all changes in employment status and in wages of an
employee to the Commission within 14 days of the occurrence and responding to
all inquiries from the Commission as to wages paid to an employee in a year in
which the employer is reporting on an annual basis within 14 days of the
postmark of the inquiry. If an employer does not report or respond to an
inquiry within 14 days, then the Commission will estimate wages paid to an
employee based on the last report the employer filed with the Commission, and
the employer will be liable for any charge based on the Commission's estimation
of the wages paid to the employee."
SECTION 2. G.S. 96-10(a) reads as rewritten:
"(a) Interest on Past-Due
Contributions. - Contributions unpaid on the date on which they are due and
payable, as prescribed by the Commission, shall bear interest at the rate set
under G.S. 105-241.1(i) per month from and after that date until payment plus
accrued interest is received by the Commission. An additional penalty in the
amount of ten percent (10%) of the taxes due shall be added, but that
penalty shall in no event be less than five dollars ($5.00).added.
Penalties and interest collected pursuant to this subsection shall be paid into
the Special Employment Security Administration Fund. If any employer, in good
faith, pays contributions to another state or to the United States under the
Federal Unemployment Tax Act, prior to a determination of liability by this
Commission, and the contributions were legally payable to this State, the
contributions, when paid to this State, shall be deemed to have been paid by
the due date under the law of this State if they were paid by the due date of the
other state or the United States."
SECTION 3. G.S. 96-10(g) reads as rewritten:
"(g) Upon the motion of the Commission, any employer refusing to submit any report required under this Chapter, after 10 days' written notice sent by the Commission by registered or certified mail to the employer's last known address, may be enjoined by any court of competent jurisdiction from hiring and continuing in employment any employees until such report is properly submitted. When an execution has been returned to the Commission unsatisfied, and the employer, after 10 days' written notice sent by the Commission by registered mail to the employer's last known address, refuses to pay the contributions covered by the execution, such employer shall upon the motion of the Commission be enjoined by any court of competent jurisdiction from hiring and continuing in employment any employees until such contributions have been paid.
An employer who fails to file a report within the required
time shall be assessed a late filing penalty of five percent (5%) of the amount
of contributions due with the report for each month or fraction of a month the
failure continues. The penalty may not exceed twenty-five percent (25%) of the
amount of contributions due or five dollars ($5.00), whichever is greater.due.
An employer who fails to file a report within the required time but owes no
contributions shall not be assessed a penalty unless the employer's failure to
file continues for more than 30 days."
SECTION 4. Sections 2 and 3 of this act become effective when they become law and apply to penalties assessed for reports and contributions due for quarters beginning on or after April 1, 2001. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 5th day of June, 2001.
s/ Beverly E. Perdue
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 1:51 p.m. this 15th day of June, 2001