In Rhode Island, a series of nine experience rating schedules have been set by law under which employer rates can range from a low of 0.6% in Schedule A to a high of 10.0% in Schedule I. For the 2023 fiscal year, the statutory employer contribution rate would be determined by the size of the index column headed at 2% but less than 2.5%. The calculated interest on Connecticut's loans from September 7, 2021 through September 30, 2021 is expected to be approximately $1 million. The taxable wage base will increase from $10,800 to $11,100 for 2022. These changes to the tax rate calculation are repealed if the trust fund reaches $4,071,519,600 on June 1. The taxable wage base increases from $27,000 to $28,700 in 2022. The bill was proposed because, statutorily, employer rates would increase without legislative intervention due to the increase in unemployment from the COVID-19 pandemic. The full range of rates with the normal, subsidiary, and the Reemployment Service Fund taxes for 2022 are 2.1% to 9.9%. In contrast, there was a sharp spike in claims due to the COVID-19 pandemic, which continues to put stress on the unemployment system. Executive Order (EO) 2021-08 supersedes a previous executive order regarding the non-charge to employer accounts of COVID-19 UI benefits. This surcharge is not credited to employer accounts as SUI taxes and should not be used when calculating federal unemployment (FUTA) liability. For example, all new employers receive a SUTA rate of 1.25% in Nebraska, and all new construction employers receive a SUTA rate of 5.4% in 2023. The non-charging provisions apply to benefits for weeks ending February 1, 2020 through the week ending September 4, 2021. For those employers at the highest tax rate, the UI taxable wage base will be set $1,500 higher at $26,100. For calendar year 2022, the adjusted state experience factor is 111% and the benefit conversion factor remains at 138.4%. Your state will assign you a rate within this range. Some states take Federal Unemployment Trust Fund loans from the federal government if they lack the funds to pay UI benefits for residents of . If the actual size of the index fund column results in a lower overall rate, the provisions would not apply. * Louisiana SUTA rates for Louisiana employers range from 0.09% to 6.20%. 2021 SB 50 directs that the 20222025 tax rates be calculated without applying the fund balance adjustment factor. The new employer tax rate will remain at 3.0%. After that peak, average rates declined for eight consecutive years through 2020. This quarterly report is . In some states, the non-charging provisions have expired. The taxable wage base will increase from $38,900 to $41,600 in 2022. 2021 HB 2002 held the social cost rate factor for 2022 to 0.3%. Iowa Announcement Relating to 2022 Wage Base Legislation (SB 5007) enacted in 2020 held the social cost rate to 0.2% for 2021. For 2022, contribution rates (including the graduated social cost rate) range from 0.30% to 6.00%. Potential Impact of COVID-19 on 2021 SUI Tax Rates, Legislative Actions Impacting 2022 SUI Tax Rates, Extension of Non-Charging of Benefits into 2021, State Actions Impacting 2022 SUI Tax Rates. A New Mexico Department of Workforce representative confirmed that the base SUI tax rates for 2022 will continue to range from 0.33% to 6.4% for experience-rated employers and from 1.0% to 1.31% for new employers. On-Demand Webinar - HR Audits: What Might Trigger Them and How Can You Better Prepare? Wisconsin AB 406 (Oklahoma governor's 2020 year-end report, page 66.). UI tax is paid on each employee's wages up to a maximum annual amount. Total rates will range from 0.8% to a maximum assigned rate of 12.8%. The unemployment tax rates for experienced employers in 2022 will range from 0.33% to 6.4% (0.33% to 5.4% in 2021). Gain the flexibility and transparency you need when conducting Pre-Employment Verifications. For 2027, the lookback period will be two years. The second January 1 will occur on January 1, 2022. See the Equifax 2021 Tax Guide for additional state-specific details. Most states send employers a new SUTA tax rate each year. Another important consideration is a state's experience rating formula, which varies from state to state. Ohio HB 168 The infusion of $382 million in federal funding into the state's unemployment trust fund allowed the unemployment tax rate schedule to remain unchanged for 2022. Beginning in July 2022, employers who make unemployment insurance contributions will be notified of the 2022 IAS rate (.23%) along with information about how to pay this annual charge (estimated to be about $27.60 per employee). Due to Order 20-19, the state only looked at the trust fund balance for the second and third quarters of 2021 to determine the CRA for 2022. Click here for the 2022 State Unemployment Limits . For initial claims with an effective date prior to September 5, 2021, employers will not be charged for the duration of the claim. UI Appeals Handbook (463.79 KB) Help manage your I-9s at each stage to offer a better onboarding experience. Had no limiter been provided for under Illinois law, the factor would have been 227%. The taxable wage base will increase from $34,800 for 2022 to $36,100 for 2023. Oklahoma Governor Kevin Stitt directed that $100 million in CARES Act funds be allocated to the state's UI trust fund in October-November 2020, which averted the need for employers to pay the fund-building surcharge and helped to ensure the agency did not have to borrow from the federal government to continue to pay UI benefits. General Account Balance: Less than $0 * The Unemployment Insurance contribution rate is the normal rate PLUS the subsidiary rate. Under Tennessee UI law, if the UI trust fund balance on December 31 of any year is less than $900 million, the taxable wage base is $9,000. With SUI tax costs anticipated to increase in the near-term, it is more important than ever for employers to take actions to help mitigate future increases, including: Diligent adjudication of unemployment claims, Auditing of benefit charges and timely appealing those that appear improper, Reconciling SUI tax rates used to pay tax contributions with the most recently issued tax rate notices to ensure proper payment. The Total Contribution Rate is the sum of the Basic Contribution Rate, the Increase for delinquency (if applicable), the Surcharge Adjustment and the Additional Contributions. Starting in 2021, and continuing for 2022, the SUI taxable wage base increased to $9,500 for all employers, up from the $9,000 that had been in effect for the past several years for non-delinquent employers ($9,500 was assigned to delinquent employers). Louisiana SB 89 The new employer rate will remain at 3.4%. Under the Federal Unemployment Insurance Tax Act (FUTA), the 2022 federal unemployment insurance wage base is $7,000, the maximum tax is 6.0% and the maximum credit reduction is 5.4%, for a net FUTA deposit rate of 0.6%. Under budget legislation (HB 7001), enacted during Virginia's 2021 second special legislative session, calendar year 2022 tax rates must be computed without all regular UI benefits charged for the period of April 1, 2020 through June 30, 2021. The deposit will improve the solvency of the Texas UI trust fund and reduce interest charges on the outstanding balance that would otherwise accrue and be payable by Texas. Massachusetts Announcement Relating to 2022 Unemployment Tax Rates The diversion of 5% of employers' tax rates continues for 2021 and 2022, proceeds going to the OESC technology fund to allow the agency to modernize its business processes and technology. New employers are exempt from the solvency surcharge. The rate for new employers will be 1.19%, including the 0.21% Job Development Assessment. The new employer rate remains at 1.0%. The final date to protest an unemployment tax rate is May 1, 2022. Maryland SB 811 Rhode Island Announcement Relating to 2022 Unemployment Tax Rates Some states correlate annual taxable wage base adjustments to state trust fund balances.6 Over the past 15 years, taxable wage bases have increased by an average of 2.5% annually. The Department credits Governor Ron DeSantis' "Freedom First" approach with helping Florida to recover its economy faster than other states. New Jersey (fiscal year jurisdiction) Bill A-4853/S-301 Virginia HB 7001 Employers with a positive reserve balance or those with a new employer tax rate will also be subject to the Employment Training Tax (ETT) of 0.10% for 2022, same as 2021. Step 1: Make Sure You're Following All Florida Payroll & Labor Laws. Watch Today! March 16, 2022. Florida's nonagricultural employment (seasonally adjusted) was 9,578,500 jobs in December 2022. Accordingly, in 2022 the UI taxable wage base for most Rhode Island employers will remain at $24,600. As of January 1, 2022, 37 states were not considered adequately funded under this measure, down from 40 states the year prior.1, The MALF is a measure of solvency using multiple factors, a states average SUI tax rate and trust fund balance at a point in time. In addition, if a state uses the funds to repay Title XII advances prior to January 1, 2022, this could help avoid FUTA credit reductions in calendar year 2022. Specifically, the bill will assign the following unemployment tax rate tables through fiscal year 2024: **NEW** New Jersey (fiscal year jurisdiction) 2022/2023 Unemployment Tax Rate Issuance The full range of rates with the normal, subsidiary, and the Reemployment Service Fund taxes for 2022 are 2.1% to 9.9%. As of July 31, 2022, the following states had outstandingTitle XII advances. Procedure 2, among other provisions, stipulates that thetaxable wage base will be $7,700 for 2022. 2017 legislation grants the territory's Secretary of Labor the discretion to increase the taxable wage base to as much as $10,500 if deemed necessary. Nevada Announcement Relating to 2022 Unemployment Tax Rates In 2021, unemployment tax rates ranged from 0.71% to 9.64% for experience-rated employers. The solvency amount is the difference between a states net current trust fund level and the recommended minimum adequate level (a trust fund level equivalent to a 1.0 AHCM divided by five). You must report your SUTA tax liability to your state and make payments. For those states that have extended non-charging provisions beyond June 30, 2021, 2023 SUI tax rates could be positively impacted. Even in those states that enacted non-charging of COVID-19 related benefits, many employers realized significant increases in calendar year 2021 SUI tax rates. The legislation incrementally increases Colorado'sunemployment taxable wage baseto $30,600 by calendar year 2026. Maryland Announcement Relating to 2022 Unemployment Tax Rates The rates above include a 0.06% contingency assessment. Note, however, the new non-profit employer contribution rate is 1.00% and new employers in the workshare program will pay 9.0% in 2022. For 2022, most positive reserve ratio balance employers, except new employers, will receive rate increases. This is because rating calculations typically take into consideration more than just a single year of experience and look back to historical experience in the development of rates. Read on to answer, What is my state unemployment tax rate? The order supersedes Executive Order 20-19 and will remain in effect through October 1, 2021 unless renewed, modified, or terminated by a subsequent EO. **NEW** California AB 178 The new act amends the Unemployment Compensation Act to waive the benefits paid to employees who became unemployed as a result of a public health emergency. Each state sets a different range of tax rates. These are basic rates and do not reflect any subsidiary taxes or reductions. The rates range from 0.50% to 7.40%. Schedule C decreased to Schedule A, and the shared cost, a constant added to all employers' rates, decreased to 0.00%. Each year, SUI tax rates may be based solely on the base rate schedule; increased by 10%, 20% or 30%; or reduced by 7% or 12%. The reports, and any payment due, must be filed on or before April 30th, July 31st, October 31st, and January 31st (if the due date falls on a weekend or a legal holiday, reports are due by the next business day). Equifax has prepared a State Claims Resource Guide summarizing certain COVID-19 related claims information, including states with non-charging of benefit provisions. Additionally, the bill proposes that there would be no surcharge assessment in 2022. New employers pay 2.7% in 2022. Tax rate notices are typically issued in November for the following calendar years. Official Data Release 23:1536(2), reducing employers tax contributions under certain circumstances: Circumstance 1: 10% discount granted to employers with positive reserve ratios if the trust fund balance is greater than $400 million dollars. Under the law, the agency may also allow the balance to remain at less than $25 million but not less than $10 million before the surcharge goes into effect. Number: UIT-0603A (FY2023) Effective Date: Thursday, December 1, 2022. Reduce the total cost of managing unemployment claims. **NEW** Hawaii HB 2471 Employers assigned the maximum SUI tax rate are not subject to this diversion. For 20232024, the social cost rate factor will be held to not more than 0.4%. Each quarter you'll file a Form RT-6, Employer's Quarterly Report, to report each employee's wages and the tax that is due. Per the U.S. Department of the Treasury site titled: Coronavirus State and Local Fiscal Recovery Funds. Negative reserve employers will no longer receive a 10% rate reduction. The North Carolina Division of Employment Security has announced its unemployment tax rates for 2022. Iowa Announcement Relating to 2022 Unemployment Tax Rates Connecticut Announcement Relating to the Federal Title XII Interest Assessments The Nevada Department of Employment, Training and Rehabilitation (DETR) paid off the $332,437,148 in early September, right before the charging of interest on the loans. Nevada SB 461 State and Local Fiscal Recovery Funds must be appropriated by December 31, 2024 and be spent by December 31, 2026. 23:1536(E)(1) relative to the unemployment insurancesolvencytax on employers. Please feel free to contact our Employment Tax Consulting Group with any questions. Interest was previously waived under a provision of the Consolidated Appropriations Act (CAA), but the provision expired on September 6, 2021. The Kentucky Office of Unemployment Insurance has updated its self-service webpage to note that the reserve accounts of contributory employers will not be charged for unemployment benefits through the third quarter of 2021. Rates may change each quarter. (4), **NEW** Historical Net Trust Fund Balances. The Department is required to end monthly distributions when the Department of Revenue receives certification from EDR that the ending balance of the UI trust fund exceeds $4,071,519,600 or on December 31,2025, whichever is earlier. As of January 6, 2022, nine states are reporting an increase in their 2022 base SUI tax rate schedules. The legislation also results in a lower new employer rate for 2021 2022 of 3.0%, rather than 5.2% under Rate Schedule H. Finally, HB 1278 requires that all UI benefits paid out during the pandemic be omitted when calculating the 20212022 tax rates. Calendar year 2020 relieved charges may be mutualized for calendar year 2022 rating purposes. Virgin Islands Announcement Relating to 2022 Unemployment Tax Rates Extends from 10 years to 20 years the look-back period used to determine Unemployment Compensation Trust Fund solvency level and provides that 2020 and 2021 are not included in the 20-year look-back period. Legislation enacted in 2020 (HB 2455) holds the increase to the State Experience Factor for 2022 to 16% above 2021's factor; as a result, the 2022 factor is held at 111% (up from 95% for 2021). WILMINGTON, DE - The Delaware Department of Labor (DOL) is announcing the new Employer Unemployment Insurance and new Construction employer tax rates for 2022, effective January 1, 2022.. New Employer and new Construction employer rates are maintained at 2020 levels; Establish 2022 merit rate at lower of 2020, 2021, or 2022 tax rate, except for delinquency rate . The bill aims to assist employers affected by the COVID-19. 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