Except for compensation paid to general executive officers and compensation paid in connection with nonapportionable income, for purposes of G.S. 105-130.4, the numerator of the payroll factor is the total amount paid in this state during the tax period by the taxpayer for compensation.  The tests to be applied in determining whether compensation is paid in this state are stated in the Model Unemployment Compensation Act which is hereby incorporated by reference.  This does not include any subsequent amendments or editions.  A copy of this act can be obtained at no charge by contacting the Department of Revenue.  Accordingly, if compensation paid to employees is included in the payroll factor by use of the cash method of accounting or if the taxpayer is required to report such compensation under such method for unemployment compensation purposes, it shall be presumed that the total wages reported by the taxpayer to this state for unemployment compensation purposes constitutes compensation paid in this state except for compensation excluded under G.S. 105-130.4(k).  The presumption may be overcome by satisfactory evidence that an employee's compensation is not properly reportable to this state for unemployment compensation purposes.


History Note:        Authority G.S. 105‑130.4; 105‑262;

Eff. February 1, 1976;

Amended Eff. January 1, 2005; January 1, 1994; October 31, 1981.