Blog

News and Helpful Answers to All Your Accounting Questions

Unemployment Tax Rates by State

Unemployment Tax Rates by State

  • October 22nd, 2014
  • jrhassociates
  • Comments Off on Unemployment Tax Rates by State

Employers are responsible for contributing to unemployment benefits programs on both the state and federal level. There are several factors that contribute to the amount for which an employer is responsible for paying into these programs, such as the company’s age and industry, number of employees, and number of unemployment claims filed against it.

With the exception of Alaska, New Jersey, and Pennsylvania, all states require employers to pay taxes toward unemployment, but do not withhold taxes from employees. We will include the withholdings for Alaska, New Jersey, and Pennsylvania on our list of unemployment tax rates by state below.

List of Unemployment Tax Rates by State

Rate for 2012* | Rate for 2013

Alabama.

Coverage: Same as federal law.

Rates: 0.59% – 6.74%*; No Experience: 2.7% fixed

Taxable Wage Limit: $8,000*

Alaska.

Coverage: Any business with at least one employee for some portion of a day.

Rates: 1.54% – 5.4%⁺; No Experience: Industry-based

Taxable Wage Limit: $36,900⁺

Employee Withholding: 0.68%⁺

Arizona.

Coverage: Same as federal law.

Rates: 0.02% – 6.67%⁺; Job Training Tax: 0.10%; No Experience: 2.0% fixed

Taxable Wage Limit: $7,000

Arkansas.

Coverage: Any business with at least one employee for some portion of at least 10 days in the previous or current calendar year.

Rates: 1.2% – 11.1%⁺; No Experience: 4.0% fixed

Taxable Wage Limit: $12,000

California.

Coverage: Any business with at least one employee during the previous or current calendar year who was paid more than $100 in any calendar quarter.

Rates: 1.5% – 6.2%⁺ (includes Emergency Solvency Surcharge Rate—1.15 times the employer rate for Schedule F, rounded to the nearest tenth); No Experience: 3.4% fixed; Certain employers are also responsible for special contributions to the Employment and Training Fund.

Taxable Wage Limit: $7,000

Colorado.

Coverage: Any business with at least one employee at any time.

Rates: 1.0% – 5.4%; No Experience: 1.7% fixed (for certain employers)

Taxable Wage Limit: $11,000*

Connecticut.

Coverage: Same as federal law

Rates: 1.9% – 6.8%⁺; No Experience: 4.5% fixed

Taxable Wage Limit: $15,000

Delaware.

Coverage: Same as federal law.

Rates: 0.1% – 8.0%*; No Experience: 3.1% fixed

Taxable Wage Limit: $10,500*

DC.

Coverage: Any business with at least one employee at any time.

Rates: 1.6% – 7%*; No Experience: 2.7% fixed

Taxable Wage Limit: $9,000

Florida.

Coverage: Same as federal law.

Rates: 1.02% – 5.4%⁺ (Exception: employers who participate in the short-term compensation program); No Experience: 2.7% fixed

Taxable Wage Limit: $8,000⁺

Georgia.

Coverage: Same as federal law.

Rates: 0.025% – 5.4%⁺ (not including 0.08% Administrative Tax when applicable); No Experience: 2.7% fixed

Taxable Wage Limit: $$9,500⁺

Hawaii.

Coverage: Any business with at least one employee during the current calendar year.

Rates: 2.4% – 6.6%⁺; No Experience: 4.6% fixed

Taxable Wage Limit: $39,600⁺

Idaho.

Coverage: Any business with at least one employee for some portion of at least one day in 20 different weeks during the previous or current calendar year, or pays its employees at least $1,500 in any quarter of the previous or current calendar year.

Rates: 0.786% – 6.8%⁺; No Experience: 2.752% fixed

Taxable Wage Limit: $34,800⁺

Illinois.

Coverage: Same as federal law.

Rates: 0.55% – 8.95%⁺; No Experience: 4.15% fixed (5.95% for new construction employers)

Taxable Wage Limit: $

Indiana.

Coverage: Same as federal law.

Rates: 0.5% – 7.4% (2011-2020); No Experience: 2.5% fixed

Taxable Wage Limit: $9,500

Iowa.

Coverage: Same as federal law.

Rates: 0% – 8.5%⁺; No Experience: 1.1% fixed for non-construction employers; 8.5% fixed for new construction employers.

Taxable Wage Limit: $26,000⁺

Kansas.

Coverage: Same as federal law.

Rates: 0.11% – 9.4%⁺; No Experience: 4% fixed for non-construction employers; 6% fixed for new construction employers.

Taxable Wage Limit: $8,000

Kentucky.

Coverage: Same as federal law.

Rates: 1.0% – 10.0%⁺; No Experience: 2.7% fixed for non-construction employers; 10% for new construction employers

Taxable Wage Limit: $9,300⁺ (scheduled to increase $300 January 1 of each year until 2022, not to exceed $12,000)

Louisiana.

Coverage: Same as federal law.

Rates: 0.10% – 6.20%⁺; No Experience: Industry-based

Taxable Wage Limit: $7,700⁺

Maine.

Coverage: Same as federal law.

Rates: 0.89% – 8.21%⁺; No Experience: 3.18% fixed

Taxable Wage Limit: $12,000

Maryland.

Coverage: Any business with at least one employee at any time.

Rates: 1.0% – 10.5%⁺; No Experience: 2.6% fixed (except for new construction employers with out-of-state headquarters, who pay 10.5%)

Taxable Wage Limit: $$8,500

Massachusetts.

Coverage: Any business with at least one employee for some portion of a day in each of 13 weeks, or pays at least $1,500 in payroll in any calendar quarter.

Rates: 1.26% – 12.27%; No Experience: 2.83% fixed for non-construction employers; 9.49% for new construction employers; certain employers also required to contribute to Unemployment Health Insurance.

Taxable Wage Limit: $14,000

Michigan.

Coverage: Any business with at least one employee in each of 20 different weeks during a calendar year, or that pays at least $1,000 in payroll in a calendar year.

Rates: 0.6% – 10.3%⁺; No Experience: 2.7% fixed

Taxable Wage Limit: $9,500⁺

Minnesota.

Coverage: Any business with at least one employee during the previous or current calendar year.

Rates: Base Rate – 0.5%⁺; Workforce Development Fee – 0.10%; Assessment of Tax Due – 14%; No Experience: 3% fixed; 9.4% for high experience rating industry new employers

Taxable Wage Limit: $29,000⁺

Mississippi.

Coverage: Same as federal law.

Rates: 0.2% – 5.4%⁺; No Experience: 1.15% fixed

Taxable Wage Limit: $14,000

Missouri.

Coverage: Same as federal law.

Rates: 0% – 9.75%⁺ (Surcharge may apply); No Experience: 3.51% fixed (some exceptions)

Taxable Wage Limit: $13,000⁺

Montana.

Coverage: Any business that has paid at least $1,000 to employees in the previous or current calendar year.

Rates: 0.80% – 6.3%⁺; No Experience: Industry-based

Taxable Wage Limit: $27,900⁺

Nebraska.

Coverage: Same as federal law.

Rates: 0% – 5.4%⁺; No Experience: 1.68% fixed for non-construction employers; 5.4% for new construction employers

Taxable Wage Limit: $9,000

Nevada.

Coverage: Any business with at least one employee during a calendar quarter who is paid at least $225, or any business that is subject to FUTA and had at least one employee in the state during the previous or current calendar year.

Rates: 0.25% – 5.4%⁺; No Experience: 2.95% fixed

Taxable Wage Limit: $26,900⁺

New Hampshire.

Coverage: Same as federal law.

Rates: 5.4%; No Experience: 3.7% fixed*; 1.0% Surcharge added to first and second quarters of 2012; 1.5% Surcharge added in addition to 1.0% for negative-rated employers for first two quarters of 2012.

Taxable Wage Limit: $14,000*

New Jersey.

Coverage: Any business that has paid employees at least $1,000 in either the previous or current calendar year.

Rates: 1.2% – 7.0% (for July 1, 2012 – June 30, 2013); No Experience: 3.4% fixed; note: NJ rates are reassigned on a fiscal year basis.

Taxable Wage Limit: $30,900⁺; $30,300*

Employee Withholding: 0.3825%

New Mexico.

Coverage: Any business with at least one employee for at least one day in 20 different weeks during the previous or current calendar year, or paysat least $450 in payroll in any quarter of the previous or current calendar year.

Rates: 0.1% – 5.4%⁺; No Experience: 2.0% fixed

Taxable Wage Limit: $22,900⁺

New York.

Coverage: Any business that pays at least $300 in payroll in any calendar quarter.

Rates: 1.5% – 9.9%*; No Experience: 4.1% fixed

Taxable Wage Limit: $8,500

North Carolina.

Unavailable

North Dakota.

Coverage: Same as federal law.

Rates: 0.17% – 9.78⁺; No Experience: 1.25% fixed for non-construction employers with positive balances; 9.78% new construction employers

Taxable Wage Limit: $31,800⁺

Ohio.

Coverage: Same as federal law.

Rates: 0.3% – 10.5%⁺; No Experience: 2.7% fixed for non-construction employers; 7.7% for new construction employers

Taxable Wage Limit: $9,000

Oklahoma.

Coverage: Same as federal law.

Rates: 0.3% – 9.2%⁺; No Experience: 2.0% fixed

Taxable Wage Limit: $20,100⁺

Oregon.

Coverage: Any business with at least one employee who works at least one day in 18 different weeks during any calendar year, or pays at least $225 in payroll in any calendar quarter.

Rates: 2.2% – 5.4%⁺; No Experience: 3.3% fixed

Taxable Wage Limit: $34,100⁺

Pennsylvania.

Coverage: Any business with at least one employee at any time during the calendar year.

Rates: 2.810% – 10.8937%⁺ (for non-delinquent employers); No Experience: 3.6785%⁺ fixed for non-construction employers; 10.1947%⁺ fixed for new construction employers

Taxable Wage Limit: $8,500⁺

Employee Withholding: 0.07%⁺

Rhode Island.

Coverage: Any business with at least one employee at any time during the calendar year.

Rates: 1.69% 9.79%⁺; No Experience: 2.83% fixed

Taxable Wage Limit: $20,200⁺ ($21,700 for employers with an experience rate of 9.79 or higher)

Puerto Rico.

Coverage: Any business with at least one employee at any time during the previous or current calendar year.

Rates: 2.4% 5.4% (2011); No Experience: 3.3% fixed

Taxable Wage Limit: $7,000

South Carolina.

Unavailable.

South Dakota.

Coverage: Same as federal law.

Rates: 0% – 9.5%⁺; No Experience: 1.2% fixed for non-construction employers; 6.0% fixed for new construction employers

Taxable Wage Limit: $13,000⁺; $14,000 (2014); $15,000 (2015)

Tennessee.

Coverage: Same as federal law.

Rates: 0.40% – 10% (for and January 1, 2013 – June 30, 2013, and July 1, 2012 – December 31, 2012); No Experience: Industry-based

Taxable Wage Limit: $9,000

Texas.

Coverage: Same as federal law.

Rates: 0.54% – 7.35%⁺; No Experience: 2.7% fixed or industry-based rate, whichever is greater

Taxable Wage Limit: $9,000

Utah.

Coverage: Any business with at least one employee for some part of a day during a calendar year (with some exceptions), or that is subject to FUTA.

Rates: 0.5% – 7.5%⁺ (not including 1.0% Surcharge); No Experience: Industry-based

Taxable Wage Limit: $30,300⁺

Vermont.

Coverage: Same as federal law.

Rates: 1.3% – 8.4% (July 1, 2012 – June, 30 2013); No Experience: 1% fixed; rates are industry-based for out-of-state new employers

Taxable Wage Limit: $16,000*

Virginia.

Coverage: Same as federal law.

Rates: 0.8% – 6.93%*; No Experience: 3.23% fixed

Taxable Wage Limit: $8,000

Washington.

Coverage: Any business with at least one employee at any time during the calendar year, or that is subject to FUTA.

Rates: 0.14% – 5.82%⁺ (not including Delinquency Taxes); No Experience: Industry-based

Taxable Wage Limit: $39,800⁺

West Virginia.

Coverage: Same as federal law.

Rates: 1.5% – 7.5%⁺ (plus 1.0% Surtax); No Experience: 2.7% fixed (with some exceptions)

Taxable Wage Limit: $12,000; when the unemployment fund reaches $220 million by Feb 15, wage limit is lowered to $9,000.

Wisconsin.

Coverage: Same as federal law.

Rates: 0.27% – 9.8%⁺; No Experience: Industry-and-payroll-based

Taxable Wage Limit: $14,000⁺

Wyoming.

Coverage: Any business with at least one employee at any time during the calendar year.

Rates: 0.63% – 10%⁺; No Experience: Industry-based

Taxable Wage Limit: $23,800⁺

Tags:

Comments are closed.