Updated
Updated · WRAL News · Jun 17
North Carolina Audits Find 22% Unemployment Payment Errors as 28% of First Checks Arrive Late
Updated
Updated · WRAL News · Jun 17

North Carolina Audits Find 22% Unemployment Payment Errors as 28% of First Checks Arrive Late

2 articles · Updated · WRAL News · Jun 17

Summary

  • Two follow-up audits found North Carolina’s unemployment system still misses federal benchmarks, with a 22% improper payment rate from 2021-2025 and 28% of first benefit checks arriving after the 14-day standard in 2024-2025.
  • The payment errors—covering fraud, overpayments and underpayments—were mostly overpayments and cost taxpayers more than $90 million above the expected 10% national error-rate threshold, the state auditor said.
  • The improper payment rate worsened from 18% in a 2022 audit, while late first checks improved from 40% in 2022 and 43% in 2024.
  • North Carolina met the national standard for on-time unemployment payments in only 3 of the past 20 years, and the Division of Employment Security said it agreed with the findings and recommendations.

Insights

NC got federal funds to fix unemployment errors in 2022. Why did the state wait three years to use them?
After failing to meet federal standards for 15 years, can North Carolina’s unemployment system finally deliver benefits on time?