Employers that had a negative account balance for four or more years were assigned SUI tax rates on Rate Schedule III, with rates ranging from 4.8% to 8.5%. The surcharge is assessed when the balance of the state UI trust fund as of the September 30 preceding the tax year is insufficient to pay seven months of UI benefits. Equifax is not providing, and cannot provide, tax and legal advice. Jan 4, 2022 Updated Jan 5, 2022. Total rates for negative-balance employers range from 3.10% to 6.30%. The unemployment tax rate for new non-construction employers (1.25%) and new construction employers (5.4%) also will be unchanged. Get real-life best practices from HR teams who have helped optimize onboarding processes to be more effective & user-friendly. The diversion is in effect for calendar years 20182022. For calendar year 2022, the adjusted state experience factor is 111% and the benefit conversion factor remains at 138.4%. Wisconsin AB 406 **NEW** Tennessee (fiscal year jurisdiction) Announcement Relating to Second Half of 2022 Tax Rates The 2022 wage base will be $24,800. Category 4 employers are contributing employers who had more than 20 employees, but fewer than 5,000 as of the 4th quarter of 2020, had an experience rating that has increased by four or more rate classes from rate year 2021 to rate year 2022; and do not meet the definitions of categories 1, 2, or 3. We will update states with missing information as they become available! The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. Connect your new hire forms and onboarding compliance management. Schedule D is the lowest contribution rate schedule. The legislation changes how Floridas UI tax rate is computed for rates effective 2022 through 2025. Read on to answer, What is my state unemployment tax rate? 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. The wage base fluctuates with the balance in the state's unemployment trust fund. The new employer tax rate will remain at 3.1% in 2022. Hawaiis Employment Security Law, as it relates to the adequate reserve fund, has been amended. However, some states (Alaska, New Jersey, and Pennsylvania) require that you withhold additional money from employee wages for state unemployment taxes (SUTA tax). The taxable wage base remains $7,000. Under the legislation, the variable SUI taxable wage base will be set at: The highest of seven rate schedules by law will be used to compute experience-rated employer tax rates for 2022; however, the 2022 tax rates will continue to consist solely of the base tax rates found in Colorado unemployment law (under the column heading "Reserve Ratio .000 to Deficit"). (6) "Building" refers to the construction industry. Put a negative sign for the figure to be adjusted in the Amount field. (Oklahoma governor's 2020 year-end report, page 66.). Tax News Update Email this document Print this document, Preliminary state unemployment insurance tax facts for 2022 (as of January 6, 2022). For the 2022 fiscal year, the contribution rate would be determined by the size of the index column headed at 2.5% but less than 3%. As adjusted, rates for 2022 range from 0.53% to 6.16%. If you live in a state that doesnt use a standard new employer rate, you must wait for your state to assign you your starting rate. Legislation (SB 5007) enacted in 2020 held the social cost rate to 0.2% for 2021. Typically, the unemployment tax rate schedule depends on the level of the state's unemployment trust fund. This was because Michigan's UI trust fund balance fell below $2.5 billion on June 30, 2020 and 2021. Per the TWC, these rate factors will be in effect for 2022: According to a TWC tax representative, the 2022 tax rate notices are expected to be mailed to employers during the week of January 10, 2022. Please see the latest updates at:Outlook for SUI Tax Rates in 2023 and Beyond. New employers pay 2.70%, except new construction employers pay 6.0% for 2022, Kentucky Announcement Relating to 2022 Unemployment Tax Rates Contributory Employers will not receive a charge statement for these quarters. As of March 31, 2021, 20states had outstanding advances totaling approximately $50.50billion. The temporary waiver of interest on Title XII loans provided in the Families First Coronavirus Response Act ended on September 6, 2021. (FL DEO) Floridians laid off in the new year will get seven fewer weeks of unemployment benefits because the state's jobless rate improved in 2021. For fiscal year 2022 (July 1, 2021 to June 30, 2022) the assignment of SUI tax rates moved from the FY 2021 Rate Schedule B, with rates ranging from 0.4% to 5.4%, to Rate Schedule C, with rates ranging from 0.5% to 5.8%. These rates are through the 2022 first quarter. Normally, the average UI trust fund balance for four quarters determines the CRA. Due to this delay in the computation date, it may lead to a delay in the issuance of the states 2022 tax rate notices. The new employer rate for both positive-balance and negative-balance construction employers will be 9.69%. EO 231 rescinds section 3(b), among other sections, which directed the Department of Commerce to not charge COVID-19 related unemployment benefits to employers' accounts. With the 3.3% credit reduction, employers in the jurisdiction will pay FUTA tax at a rate of 3.9%. North Dakotas 2022 contribution rates will continue to range from 0.08% to 1.13% for positive-balance employers and from 6.09% to 9.69% for negative-balance employers. The FUTA tax credit starts at 5.40% and is reduced by 0.30% (known as the FUTA credit reduction) for each year the loan remains outstanding beyond the second year. Running payroll means staying on top of your employment tax responsibilities. As a result, employer basic SUI tax rates continue to range from 0.5% to 7.4% for 2021. The new legislation modifies requirements regarding the calculation and payment of unemployment insurance taxes to provide employers immediate and long-term relief. To account for the reduction in solvency rate, employers that were charged a solvency assessment on their 2021 rate notice will be credited back a portion of the solvency assessment to their account's experience-rating reserve balance, resulting in an adjusted 2021 UI rate. Should a state's Title XII advances remain outstanding on November 10, 2022, employers in the state will be subject to a 0.30% increase in the FUTA tax rate, from 0.60% to 0.90%, for the entire 2022 calendar year. Vermont 2021/2022 SUI tax rates were issued on June 24, 2021. An Annual Tax Rate Notice detailing individual rates will be mailed to each employer on November 12, 2021. (3) The surcharge is shown separately on the quarterly contribution report (or billed on a separate notice). SB 50 also required the state make three deposits during 2021 to the UI trust fund balance. For 2022, Schedule I remains in effect and there is also a 0.13% Administrative Fund Tax (AFT) for employers in Rate Class 1 and 2 and a 0.18% AFT for all other experience-rated employers. The legislation has a number of provisions designed to provide unemployment tax relief to employers. The Oregon Employment Department (OED) has announced that unemployment tax rates will be reduced in 2022. So, how much is unemployment tax? Only the first $7,000 of wages paid to each employee by their employer in a calendar year is taxable. As a result, employers will be given full credit for their 20212022 SUI contributions. The unemployment tax rates for new employers vary by industry and range from 1.0% to 1.31% in 2022 (1.0% to 1.23% in 2021). For fiscal year 2023 (July 1, 2022 to June 30, 2023) the assignment of SUI tax rates will move from Rate Schedule C to Rate Schedule D, with rates ranging from 0.6% to 6.4%. Virgin Islands Announcement Relating to 2022 Unemployment Tax Rates From 2020 to 2021, taxable wage bases increased by an average of 2.9%. The rate payable by new employers in 2022 is 2.376%. Benefits paid in the first and second quarters of 2021 were also not charged against the accounts of contributory employers. Equifax has prepared a State Claims Resource Guide summarizing certain COVID-19 related claims information, including states with non-charging of benefit provisions. Before taking any actions, employers should consult with internal and/or external counsel. It shows gross unemployment income you earned and how much, if any, was withheld for taxes. The final date to protest an unemployment tax rate is May 1, 2022. For Category 3 and 4 employers, approved benefits are the benefits paid to employees during the fiscal year ending June 30, 2021, not to exceed an amount that would reduce the employer's rate class increase to no more than a three-rate class increase. See plans to help you meet your ACA obligations, Choose a plan to help you onboard new hires with confidence, Take control of your I-9s by finding a management plan, Select a plan that fits your organizations unemployment cost needs. Due to SB 20-207, there are no fund-building surtaxes or additional rates added to the 2022 SUI base tax rate. Updated 01/31/2023 . For 2022, the rate schedule in effect is the column labeled Less than 0%. In this column, the rates range from 1.5% to 4.1% for positive-balance employers and from 5.2% to 8.9% for negative-balance employers. The second January 1 will occur on January 1, 2022. Similarly, the statewide benefits and taxable wages for calendar years 2020 and 2021 will be disregarded when calculating the 2022 tax rate that will apply to new employers. Per data obtained from the TreasuryDirect site (a service offered by the U.S. Department of the Treasury Bureau of the Fiscal Service). The combined state workforce investment, Mississippi Works, and Workforce Enhancement Training surcharge continued at 0.2%. Ohio Announcement Relating to 2022 Unemployment Tax Rates . 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