What steps should I take if I accidentally under-withheld North Carolina UI taxes?

If you discover that you have under-withheld North Carolina UI taxes, you should take the following steps immediately:

1. Calculate the Correct Amount: Determine the total amount of UI taxes that should have been withheld.

2. Make a Payment: Submit the additional taxes owed to the North Carolina Division of Employment Security (DES) as soon as possible to minimize interest and penalties.

3. File an Amended Report (if necessary): If the underpayment affects previously filed reports, file an amended UI report reflecting the correct amounts.

4. Monitor Penalties and Interest: Be aware that late payments may incur interest and penalties. Contact DES if you need guidance on reducing these charges.

5. Adjust Future Withholding: Correct your payroll procedures to prevent under-withholding in future reporting periods.

Prompt action helps ensure compliance and can limit potential penalties.