§ 96-12. Benefits. - North Carolina Statutes

§ 96‑12.  Benefits.

(a)        Payment ofBenefits. – Twenty‑four months after the date when contributions firstaccrue under this Chapter benefits shall become payable from the fund. Allbenefits shall be paid through employment offices, in accordance with such regulationsas the Commission may prescribe.

(b)      (1)           a.         Repealedby Session Laws 1977, c. 727, s. 52.

b.         An individual who istotally unemployed shall be paid the individual's weekly benefit amount. Theweekly benefit amount for an individual is the amount of the high‑quarterwages paid to the individual in the individual's base period, divided by 26and, if the quotient is not a whole dollar, rounded to the next lower wholedollar. If this amount is less than fifteen dollars ($15.00), the individual isnot eligible for benefits.

c.         Repealed by SessionLaws 1981, c. 160, s. 17.

(2)        Each August 1, theCommission shall calculate the maximum weekly benefit amount available to anindividual. The maximum weekly benefit amount is sixty‑six and two‑thirdspercent (66 2/3%) of the average weekly insured wage rounded, if the amount isnot a whole dollar, to the next lower whole dollar. The maximum weekly benefitamount set on August 1 of a year applies to an individual whose benefit yearbegins on or after that date and before August 1 of the following year.

(3)        Repealed by SessionLaws 1981, c. 160, s. 18.

(4)        Qualifying Wages forSecond Benefit Year. – An individual whose prior benefit year has expired andwho files a new benefit claim is not entitled to benefits unless the individualhas been paid qualifying wages since the beginning date of the prior benefityear and before the date the new benefit claim was filed equal to at least sixtimes the average weekly insured wage, obtained in accordance with G.S. 96‑8(22),and has been paid wages in at least two quarters of the individual's baseperiod. "Qualifying wages" are wages earned with an employer subjectto the provisions of this Chapter or some other state employment security lawor in federal service as defined in 5 U.S.C. Chapter 85.

(c)        Partial WeeklyBenefit. – An individual who is partially unemployed or part‑totallyemployed shall be paid a portion of the individual's weekly benefit amount. Theportion payable is the difference between the individual's weekly benefitamount and any part of the wages or remuneration that is payable to theindividual for a week for which benefits are claimed and that exceeds tenpercent (10%) of the individual's average weekly wage in the highest quarter ofthe individual's base period rounded, if the amount is not a whole dollar, tothe next lower whole dollar. Payments received by an individual under asupplemental benefit plan referred to in G.S. 96‑8(13)d. do not affectthe computation of the individual's partial weekly benefit.

(d)        Duration ofBenefits. – The total benefits paid to an individual shall not be less than theminimum total benefit and shall not exceed the lesser of the maximum totalbenefit or the individual's total benefit amount. The total benefit amount foran individual is determined by dividing the individual's base‑periodwages by the individual's high‑quarter wages, multiplying that quotientby eight and two thirds, rounding the result to the nearest whole number, andthen multiplying the resulting amount by the individual's weekly benefitamount. The minimum total benefit for an individual is 13 times theindividual's weekly benefit amount. The maximum total benefit for an individualis 26 times the individual's weekly benefit amount, unless the benefits areextended further in accordance with G.S. 96‑12.01. The Commission shallestablish and maintain individual wage record accounts for each individual whoearns wages in covered employment for as long as the wages would be included ina determination of benefits.

(e)        Recodified as § 96‑12.01by Session Laws 1997‑456, s. 27.

(f)         Any amount payableunder any provision of this Chapter when applicable is subject to theretirement reduction required by G.S. 96‑14(9).

(g)        Income TaxWithholding. – When an individual files a new claim for unemploymentcompensation, the individual shall be advised in writing at the time of filingthat:

(1)        Unemploymentcompensation is subject to federal and State individual income tax.

(2)        Requirements existpertaining to estimated tax payments.

(3)        The individual mayelect to have federal individual income tax deducted and withheld from theindividual's payment of unemployment compensation at the amount specified insection 3402 of the Internal Revenue Code.

(4)        The individual mayelect to have State individual income tax deducted and withheld from theindividual's payment of unemployment compensation in an amount determined bythe individual.

(5)        The individual maychange a previously elected withholding status.

The Commission shall followthe procedures specified by the United States Department of Labor, the InternalRevenue Service, and the Department of Revenue pertaining to the deducting andwithholding of individual income tax. The amounts deducted and withheld fromunemployment compensation shall remain in the Unemployment Insurance Fund untiltransferred to the appropriate taxing authority as a payment of income tax. Iftwo or more deductions are made from an individual's unemployment compensationpayment, then the deductions will be deducted and withheld in accordance withpriorities established by the Commission. (Ex. Sess. 1936, c. 1, s. 3; 1937, c. 448, s. 1; 1939,c. 27, ss. 1‑3, 14; c. 141; 1941, c. 108, s. 1; c. 276; 1943, c. 377, ss.1‑4; 1945, c. 522, ss. 24‑26; 1947, c. 326, s. 21; 1949, c. 424,ss. 19‑21; 1951, c. 332, ss. 10‑12; 1953, c. 401, ss. 17, 18; 1957,c. 1059, ss. 12, 13; c. 1339; 1959, c. 362, ss. 12‑15; 1961, c. 454, ss.17, 18; 1965, c. 795, ss. 15, 16; 1969, c. 575, s. 9; 1971, c. 673, ss. 25, 26;1973, c. 1138, ss. 3‑7; 1975, c. 2, ss. 1‑5; 1977, c. 727, s. 52;1979, c. 660, ss. 18, 19; 1981, c. 160, ss. 17‑23; 1981 (Reg. Sess.,1982), c. 1178, ss. 3‑14; 1983, c. 585, ss. 12‑16; c. 625, ss. 1,7; 1985, c. 552, s. 9; 1985 (Reg. Sess., 1986), c. 918; 1987, c. 17, s. 8;1993, c. 122, s. 2; 1993 (Reg. Sess., 1994), c. 680, ss. 1‑3; 1995 (Reg.Sess., 1996), c. 646, s. 25(a); 1997‑456, s. 27; 1999‑340, s. 11;2001‑414, s. 41.)