MemberJanuary 10, 2024 at 2:43 pm
Hi Holly…you ask a good question and just happen to be stumbling upon a fellow North Carolinian! I have generally seen more organizations opt to pay into the fund rather than to self insure simply to reduce the potential for large payments when claims are filed by terminated employees.
In North Carolina, the annual cost to pay into the fund (rather than self insuring) would be (to start) 1% of the first ~$30K (increased annually) of earnings per employee, so around $300 per employee annually to start. The cost would increase or decrease based on your experience with unemployment claims.
Opting to self insure would mean that you would be required to reimburse the unemployment trust fund for any unemployment benefits claimed from terminated employees as well as maintaining an escrow account with the state totaling 1% of annual payroll.
Hope this helps in your decision!