By Tom Towson, CPA
Last updated: May 8, 2023 (changes since last update on March
15, 2023 will begin with **NEW**)
Many states acted quickly in response to the COVID-19
pandemic to help mitigate sizable increases in 2021 SUI tax rates.
Even with these mitigation efforts, SUI tax rates increased, on
average, from 1.72% in 2020 to 1.89% in 2021 to 2.30% in 2022.¹
Now the question becomes, what is the outlook for 2023 SUI tax rates?
Before addressing SUI tax rates, FUTA tax rates and FUTA
credit reductions are top of mind for employers as well. The U.S.
Department of Labor, as of November 10, 2022, announced that
(California, Connecticut, Illinois, New York and the Virgin Islands)
have had outstanding Title XII advances on January 1 for two
consecutive years (2021 and 2022), and on November 10, 2022. As
such, these jurisdictions will be subject to a FUTA credit reduction
for 2022. As such, the net FUTA tax rate for 2022. The net
FUTA tax rate for 2022 will increase by 50% from 0.60% to 0.90% (the
U.S. Virgin Islands will have its FUTA tax credit reduced by 3.6%
for an effective FUTA tax rate of 4.2%.)
On January 25, 2023, the state of Illinois repaid all
outstanding Title XII advances. Because of this action, the state
should not be subject to a FUTA credit reduction for calendar year
2023, as long as the state does not borrow again and have
outstanding advances as of November 10, 2023.
**New** FUTA Credit Reductions - 2023
Illinois: On January 25, 2023, the state of
Illinois repaid all outstanding Title XII advances. Because of
this action, the state should not be subject to a FUTA credit
reduction for calendar year 2023, as long as the state does not
borrow again and have outstanding advances as of November 10, 2023.
Colorado and Pennsylvania: Colorado and
Pennsylvania took Title XII advances during the first quarter of
2023. These states did not have outstanding advances on January 1st
of two consecutive years so should not be subject to a FUTA credit
reduction for 2023.
Virgin Islands: If the Virgin Islands
continues to have an outstanding Title XII advance as of November
10, 2023, the jurisdiction will be subject to another 0.30% increase
in the FUTA tax rate, from 4.20% in 2022 to 4.50% in 2023. The BCR
rate has been waived during all prior years.
Other Jurisdictions: If California,
Connecticut, and New York continue to have outstanding Title XII
advances as of November 10, 2023, the jurisdictions will be subject
to another 0.30% increase in the FUTA tax rate, from 0.90% in 2022
to 1.20% in 2023.
**NEW** Advances to State Unemployment
Funds² (Title XII of the Social Security
* Federal Title XII advance existed
COVID-19 crisis and continues to be
subject to FUTA credit reductions.
(a) As of March 31, 2011, the highest
levels experienced as a result of the Great
(b) As of March 31, 2021, the highest
levels experienced as a result of the
(c) As of
February 7, 2023
A logical starting point for addressing the outlook for 2023
SUI tax rates is state unemployment trust fund balances, a primary
factor in developing SUI tax rates. As such, particular attention
should be paid to these balances as an indicator of where rates may
be headed in 2023 and beyond.
As depicted in the following graph, net trust fund balances
(trust fund balance net of Title XII advances) were negative $39.46
billion at the end of Q1 2011, as a result of the Great Recession,
compared to negative $27.12 billion at the end of Q1 2021, as a
result of the COVID-19 pandemic (i.e., $12.34 billion more solvent).
By the end of Q1 2022, trust fund balances rebounded and were a net
positive, for the first time after the COVID-19 pandemic. As of the
end of Q4 2022, net trust fund balances were positive $27.76 billion.³
Net trust fund balances were substantially higher pre-COVID
than they were pre-Great Recession. Because of this, net trust fund
balances did not reach the negative levels experienced during the
The following graph illustrates net trust fund balances by
state as of December 31, 2022.³
The depletion of state trust funds can have negative
implications not only to future SUI tax rates but also the amount of
wages subject to those tax rates. Employers pay SUI tax on wages
earned and paid to each employee within a calendar year up to a
specified amount, known as the annual taxable wage base. Some states
correlate annual taxable wage base adjustments to state trust fund
balances.⁴ Over the past 15 years, taxable wage bases have increased
by an average of 2.5% annually. During the height of the Great
Recession (from 2008 to 2010), the average annual increase was 4.8%.
From 2020 to 2021, taxable wage bases increased by an average of
2.9%. From 2021 to 2022, taxable wage bases increased by an average
of 3.9%. From 2022 to 2023, taxable wage bases increased an average
The following table provides 2023 annual taxable wage bases
(1) The higher wage base only applies to employers
assigned the maximum rate.
A - Actual wage base,
assuming no law change.
E - Best estimate,
assuming no law change.
As state trust funds are depleted during a period of high or
increased levels of unemployment, SUI tax rates have historically
increased as well. However, the correlation is not immediate. There is
typically a lag between when economic downturns impact SUI tax rates.
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. And since rates are issued
annually, a full year can pass before rates are next adjusted.
As illustrated in the below graph, as net trust fund
balances began to decline in 2009 as a result of the Great
Recession, the average SUI tax rate in the US did not hit its peak
until 2012. After that peak, average rates declined for eight
consecutive years through 2020. From 2020 to 2021, the average SUI
tax rate increased from 1.72% to 1.89% (a 9.9% increase). From
2020 to 2021, the average SUI tax rate increased from 1.89% to an
estimated 2.30% (a 21.7% increase).
The following contains examples of actions taken by states
that could impact 2023 and future SUI tax rates:
Contribution rates in Alaska for 2023 range from 1.00% to
5.4% for eligible employers, based on payroll decline experience.
The tax rates for new employers vary by industry but will range
from 1.31% to 1.86%, and the tax rate for employees in 2023 will
be 0.51%. The taxable wage base for 2023 will be $47,100 (from
45,200 in 2022).
The Alabama 2023 SUI tax rates were dated December 13, 2022.
Schedule C decreased to Schedule A, and the shared cost, a constant
added to all employers' rates, decreased to 0.00%. The rates range
from 0.20% to 5.40% (0.05% to 6.10% in 2022). The taxable wage base
The Arkansas 2023 SUI tax rates are dated December 21,
2022. The basic rate table remained the same and the Stabilization
Tax Rate remained at 0.2%. The new employer tax rate will remain
at 3.1%. The minimum and maximum unemployment tax rates for
experienced employers will continue to be 0.30% and 14.20%,
respectively. The taxable wage base decreased to $7,000 in 2023
(from $10,000 in 2022).
Arkansas HB 1430 (relating to 2024 Unemployment Tax
Rates and Wage Base)
The bill reduces: (1) the new employer unemployment tax rate
from 2.9% to 1.9%; (2) the administrative assessment from 0.2% to
0.125% in the 2024 fiscal year; and (3) the penalty rate for failure
to make timely unemployment tax payments from 14% to 10%. The bill
would also set the unemployment taxable wage base to $7,000,
beginning with 2024, when the unemployment trust fund balance is in
excess of $600 million.
Unemployment tax rates for experienced employers in the 2023
tax year will range from 0.07% to 18.78% (0.08% to 20.93% in 2022).
The new employer rate will remain at 2.0%. The taxable wage base
will increase to $8,000 for 2023 (from $7,000 for 2022).
The bill earmarks $250 million from the General Fund to the
Employment Development Department (EDD) to pay towards an outstanding
balance of advances under Title XII of the Social Security Act (SSA)
for unemployment benefit claims during the COVID-19 pandemic. The bill
also notes that the legislature intends to appropriate $500 million in
the 2024 budget bill to provide relief to small businesses as result
of anticipated tax rate increases due to the FUTA credit reduction.
Schedule F+, with rates ranging from 1.5% to 5.9% for
positive-balance employers (including zero reserve ratio) and 6.2% for
all negative-balance employers, continues in effect in California for
calendar year 2023. New employers continue to pay 3.4% in 2023 as
well. There is also a 0.1% extra Employment Training Tax for
positive-balance employers, which is deposited in the Employment and
Training Fund. In addition, voluntary contributions are not permitted
in 2023. The UI taxable wage base in California for 2023 remains at $7,000.
The legislation incrementally increases Colorado's
unemployment taxable wage base to $30,600 by calendar year 2026. The
wage base will increase to $20,400 in 2023 (from $17,000 in 2022),
$23,800 in 2024, $27,200 in 2025, and $30,600 in 2026. Each year
thereafter, the wage base will be adjusted by the change in average
The law amends Colorado's unemployment law to extend the
hold on an employer's solvency surcharge through calendar year 2023.
The Colorado rates were released on November 30, 2022. The
base rate schedule for reserve ratio 0.000 to DEFICIT remains in
effect. Rates range from: 0.75% to 10.39% and the taxable wage base
increased from $17,000 to $20,400 in 2023.
The state indicated that benefits paid to those employees
who were unemployed because of the COVID-19 pandemic will not be
charged to employer accounts. Adjustments have already been made
to charges that impact the 2023 rate. If you believe you are owed
additional adjustments, a protest must be filed online at
cdle.colorado.gov/premium-rates under the links for “Rate Protest” and
“Submit A Written Protest” after December 1, 2022, but on or before
the deadline of January 13, 2023.
Please note that while the rate notices indicate that the
protest deadline is 20 days from the issuance date, which would be
December 20, 2022, the cover letter that was mailed with the rates
indicates that the protest period goes from December 1, 2022 to
January 13, 2023.
The law increases the unemployment taxable wage base from
$15,000 to $25,000, beginning January 1, 2024. Each year thereafter,
the wage base will be indexed for inflation. The bill also expands
the range of experienced unemployment tax rates from 0.1% to 10%,
beginning January 1, 2024. Other provisions that will take effect on
January 1, 2024 include: not charging employers for unemployment
benefits claimed through the state's shared work program during
periods of high unemployment and capping the fund solvency tax at
1.0%. During a period of economic recession, the maximum solvency
tax rate will be reduced to 0.5%, according to the bill. Beginning
January 1, 2022, the legislation will require the Connecticut
Department of Labor to adjust the benefit ratio for each employer in
an industry sector (based on the North American Industry
Classification System) downward by 50% of the average increase in
that sector if the average benefit ratio for all employers within
that sector increases over the prior calendar year's average by 0.01
or greater. In addition, the legislation temporarily changes the
lookback period for determining an employer's unemployment
experience rating. The lookback period has historically been three
consecutive years preceding the computation date. For 2026, the
lookback period will be one year. For 2027, the lookback period will
be two years.
Sec. 211 of Public Act 22-118 was passed to reduce rates to
all contributory employers by 0.2% in 2023. The law reduces the New
Employer Rate by 0.2% and caps the Fund Tax Rate at 1.2% (from 1.4%).
This is only in effect for the 2023 rate year.
The Connecticut 2023 SUI tax rates are dated December 30,
2022.. The new employer tax rate will decrease from 3.0% to 2.8%.
The minimum and maximum unemployment tax rates for experienced
employers will decrease from that of 2022 to be 1.7% and 6.6%,
respectively. The 2023 taxable wage base remains $15,000.
The Delaware 2023 SUI tax rates were dated February 7, 2023.
The State Experience Factor increased to 35 and the supplemental
rate remained 0.2%. The state passed legislation to keep rates low
for employers for one more year. Most employers will receive an
assigned rate that is lower than the earned rate which would have
been calculated, except for delinquency rates (conditions apply).
The rates range from 0.30% to 8.20%. The taxable wage base decreased
from $14,500 to $10,500 for 2023.
The District of Columbia Department of Employment Services
has announced that unemployment tax rates will continue to be
determined under Rate Table VI in 2023. Experience rates under Table
VI range from 1.0% to 4.4% for positive-balanced employers and from
6.2% to 7.4% for negative-balanced employers. The new employer tax
rate remains at 2.7% and the 0.2% administrative assessment (paid by
both experienced and new employers) continues to be in effect in
2023. The unemployment taxable wage base remains at $9,000 in 2023.
The legislation changes how Florida’s UI tax rate is
computed for rates effective 2022 through 2025.
Tax rates effective January 1, 2022, will exclude charges
from the second, third and fourth quarters of 2020 and all benefit
charges paid as a direct result of a government order to close or
reduce capacity of a business due to COVID-19, as determined by the
Department of Economic Opportunity. The tax rate calculation will
also exclude the application of the positive adjustment factor
(trust fund trigger). Lastly, benefit charges from the first and
second quarters of 2021 may be decreased if the Office of Economic
and Demographic Research (EDR) estimates total tax collection for
rate year 2022 will exceed $475.5 million. Since EDR has until
January 1, 2022, to advise the Department whether to decrease
benefit charges, the Department has until March 1, 2022, to post
rates for the 2022 calendar year.
Tax rates effective January 1, 2023 through
December 31, 2025, will exclude charges from the
second, third and fourth quarters of 2020 and all benefit charges
paid as a direct result of a government order to close or reduce
capacity of a business due to COVID-19, as determined by the
Department of Economic Opportunity. The tax rate calculation will
also exclude the application of the positive adjustment factor
(trust fund trigger). Lastly, benefit charges from the first and
second quarters of 2021 may be decreased if EDR estimates total
tax collection for rate year 2022 will exceed $475.5 million.
These changes to the tax rate calculation are repealed if the
trust fund reaches $4,071,519,600 on June 1.
The new legislation required the state to make three
deposits during 2021 to the UI trust fund. The funding comes from
online sales tax collected from out-of-state e-commerce companies.
In addition, beginning July 2022, and on or before the 25th day of
each of the following months, the Florida Department of Revenue will
distribute $90 million monthly to the state's UI trust fund. 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.
The Florida 2023 SUI tax rates are dated December 22, 2022.
The minimum rate is 0.10% and the maximum rate is 5.4%, except that
employers participating in the short-time compensation program may be
subject to a maximum rate of 6.4%. New employers pay 2.7% in 2023. The
final adjustment factor remained 0.000 and the multiplier decreased to
0.1628 for 2023. The taxable wage base remains $7,000.
Effective January 1, 2023, the unemployment tax
administrative assessment expired. This tax had been in place for
several decades. It was last reauthorized by the Georgia Legislature
through December 31, 2022. The Georgia state legislature decided not
to renew this tax in the most recent legislative session. Therefore,
the Administrative Assessment portion of an employer's total tax
rate for 2023 will reflect 0.00% to replace the previous
Administrative Assessment of 0.06%. According to the Georgia
Department of Labor (GDOL), with the elimination of the
administrative assessment, there is an accompanying change in the
base employer tax rates from the base rate tables, which may result
in a small total tax rate increase for employers. The GDOL also
notes that the annual unemployment tax rate notices are available on
the Employer Portal and states that these rate notices will not be
mailed to employers.
The rates range from 0.06% to 8.10%. The taxable wage base
remains at $9,500.
Hawaii’s Employment Security Law, as it relates to the
adequate reserve fund, has been amended. Effective for the calendar
years 2023 through 2030, "adequate reserve fund" means an
amount that is equal to the amount derived by multiplying the
benefit cost rate that is the highest during the 10-year period
ending on November 30 of each year by the total remuneration paid by
all employers, with respect to all employment for which
contributions are payable during the last four calendar quarters
ending on June 30 of the same year, as reported on contribution
reports filed on or before October 31 of the same year, but does not
include the benefit cost rate from June 2020 through August 2021.
Schedule F will be in effect in Hawaii for 2023, with rates
ranging from 1.2% to 4.0% for positive reserve ratio employers and
from 4.4% to 6.2% for negative reserve ratio employers. The
contribution rate for new employers will be 4.0% and the Employment
and Training Assessment Rate will remain at 0.01%. The 2023 taxable
wage base will be $56,700, from $51,600 for 2022.
For calendar year 2023, the adjusted state experience factor
is 127% and the benefit conversion factor remains at 138.4%. Total
rates range from 0.850% to 8.650%, including the 0.55% fund building
factor in effect for 2023. An employer whose contribution rate is
5.40% or higher and whose total quarterly wages are less than
$50,000 pays contributions at 5.40% in that quarter. New employers
pay 3.950% for 2023. There are no NAICS-rated sectors in 2023 that
will pay a higher entry rate. The taxable wage base increased to
$13,271 for 2023 (from $12,960 for 2022).
The bill freezes unemployment tax rates at 2021 levels for
the 2022 and 2023 tax years.
In 2023, contribution rate amounts are the same as they were
in 2022. Employers in the best positive-rate class continue to be
assigned a tax rate of 0.207% and those in the least positive-rate
class are assigned a tax rate of 0.691%. In 2023, employers in the
least negative-rate class will continue to pay a rate of 1.245%, while
those in the most deficit-rate class continue to pay at the rate of
5.4%. The taxable wage base for 2023, increases to $49,900, up from
$46,500 in 2022. The standard rate is 1.0%.
The Illinois Unemployment Insurance Act includes the
following sections relating to 2023 rate computation factors:
D-3: The adjusted state experience factor for
calendar year 2023 shall be increased by 16% absolute above
the adjusted state experience factor as calculated without
regard to this subsection. The increase in the adjusted
state experience factor for calendar year 2023 pursuant to this
subsection shall not be counted for purposes of applying paragraph
3 or 4 of subsection D to the calculation of the adjusted state
experience factor for calendar year 2024.
Section 1506.6: For each
employer whose contribution rate for calendar year 2023 is
determined pursuant to Section 1500 or 1506.1, in addition
to the contribution rate established pursuant to Section
1506.3, an additional surcharge of 0.325% shall be added to
the contribution rate. The surcharge established by this
Section shall be due at the same time as other contributions
with respect to the quarter are due, as provided in Section
1400. Payments attributable to the surcharge established
pursuant to this Section shall be contributions and deposited into
the clearing account.
The law creates a new tax rate Schedule C (former Schedule
E) which is to remain in effect through 2025. The rates range from
0.50% to 7.40%.
The Indiana 2023 SUI tax rates are dated January 2, 2023.
Schedule C remained in effect. The rates range from 0.50% to
7.40%. The state of Indiana allows voluntary contributions which
must be made by February 1, 2023. Please note all voluntary
contributions must be submitted electronically through the employer
portal on the state website. The taxable wage base remains $9,500.
On August 24, 2022, Iowa Workforce Development (IWD)
announced that the unemployment tax rate schedule used to
determine employer rates will be at the lowest level in 24 years
in 2023. State law requires the IWD to establish an annual
unemployment tax rate table. There is a trigger for determining
which rate table will be in effect that is mainly based on the
state's unemployment trust fund, benefit history and covered wage
growth. For the past five years, unemployment tax rates have been
determined from Table 7. This is the second lowest rate table. In
2023, rates will be determined under Table 8, which is the lowest
rate table. Rates under Table 8 range from 0% to 7%. Rates under
table 7 range from 0% to 7.5%. The unemployment taxable wage base
will increase from $34,800 to $36,100 in 2023.
The Kansas 2023 SUI tax rates were issued on November 10,
2022. The rate table remained the same and the solvency adjustment
remained 0.00%. A Rate Group Multiplier of -0.03158 has been applied
to all brackets of the table leading to lower tax rates across the
board. The rates range from 0.17% to 6.40%. The taxable wage base
Schedule A will be in use for tax year 2023. Under this
schedule, positively rated employers will pay unemployment tax rates
from 0.30% to 2.4%, and negatively rated employers will pay
unemployment tax rates from 6.50% to 9.00%. The taxable wage base
has increased from $10,800 to $11,100 for tax year 2023.
Contribution rate notices for contributory employers will be mailed
out in early December.
Due to the passage of House Bill 144, signed into law on
March 22 /2022, the taxable wages used to determine the reserve
ratio have changed. Instead of using three years of taxable wages,
the 2023 tax rate calculation uses only one year of taxable wages:
third quarter 2021 through second quarter 2022.
The Louisiana Workforce Commission has posted the 2023
unemployment tax rate table. The experienced employer rates will
continue to range between 0.09% and 6.20%. Rates for negative-rated
employers will range from 2.22% to 6.2% while rates for
positive-rated employers will range from 0.09% to 1.95%. The new
employer rate is the average rate for employers in the new
employer's industrial classification according to the latest rate
computation. The unemployment taxable wage base for 2023 will remain
The Maine 2023 SUI tax rates are dated December 29, 2022.
The unemployment tax rate table decreased from Schedule B in 2022 to
Schedule A in 2023, the lowest unemployment tax schedule under law.
Contribution rates will be adjusted by a 0.07% Competitive Skills
Scholarship Fund (CSSF) rate and a 0.14% Unemployment Program
Administrative Fund (UPAF) rate that are in effect. As adjusted, rates
for 2023 range from 0.22% to 5.69%. New employers pay a combined total
rate of 2.19% in 2023. The taxable wage base remains $12,000.
The Maryland 2023 SUI tax rates are dated January 14, 2023.
For calendar year 2023, rates are determined under Table C and range
from 1.00% to 10.50%. Once again employers will be granted the lower
of the two rate computations, 2020 or 2023 as applied to table C.
New employers pay 2.30% for 2023, except that new construction
employers headquartered in another state pay 5.10%. The taxable wage
base remains $8,500.
The Massachusetts 2023 SUI tax rates are dated December 29,
2022. The table decreased from E to A. The Solvency Assessment
decreased from 0.59% to 0.37%, but the COVID-19 Recovery Assessment
increased from 12.5% to 126.4% of the basic rate which will cause
the rates to be higher than last year. The total rates range from
1.324% to 19.572%. The taxable wage base remains $15,000.
Contribution rates for employers with three or more years of
experience will continue to range from 0.06% to 10.3% in 2023. The
maximum rate of 10.3% includes a 6.3% maximum chargeable benefit
component, a 3.0% maximum account building component, and a 1.0%
maximum nonchargeable benefits component. Note that if the employer
has submitted no quarterly tax reports, that employer's maximum tax
rate will be 10.3%, and the employer also will be assessed a penalty
of 3.0%, which is separate from the contribution rate. In addition,
the new employer rate remains at 2.7%, plus part of its chargeable
benefits component depending on the employer’s year of liability,
except for new construction employers.
The law reduces the amount of unemployment tax and
assessments a taxpaying employer will owe in 2022 and 2023. The
legislation changes the 2022 and 2023 base rate from 0.50% to
0.10%, the 2022 and 2023 additional assessment from 14.00% to
0.00%, and the 2022 special assessment (federal interest loan
assessment) from 1.80% to 0%.
The Minnesota 2023 SUI tax rates are dated December 8, 2022.
The Base Rate remained 0.1%, and the Workforce Enhancement Fee of
0.1% remained the same. The rates range from 0.20% to 9.10% which
includes the 0.1% Workforce Enhancement Fee. Tax rates for new
employers vary by industry and will range from 1.0% to 8.9% in
2023. An additional assessment will not be applied in 2023 as
prescribed by SB 2677 (see above). The taxable wage base for
unemployment tax purposes will increase from $38,000 to $40,000 for 2023.
The act provides that the general experience rate for 2021
shall be 0%; provides that charges attributed to each employer's
individual experience rate for the period March 8, 2020, through
June 30, 2020, will not impact the employer's individual experience
rate calculations for purposes of calculating the total unemployment
insurance rate for 2021 and the two subsequent tax rate years;
provides that charges attributed to each employer's individual
experience rate for the period July 1, 2020 through December 31,
2020, will not impact the employer's individual experience rate
calculations for purposes of calculating the total unemployment
insurance rate for 2022 and the two subsequent tax rate years.
**New** Mississippi SB 2810
A provision within the law clarifies that unemployment
benefits paid for reasons relating to the COVID-19 health emergency
will not be used for the purposes of calculating the general
experience rate assigned to employers. This provision retroactively
takes effect on January 1, 2023. Existing state law in Miss. Code
Ann. §71-5-355 already states that benefit charges attributable to
each individual employer's experience rate: (1) from March 8, 2020
through June 30, 2020 will not impact the individual employer's
unemployment tax rate calculation for 2021, 2022, and 2023; and (2)
from July 1, 2020 through December 31, 2020 will not impact the
individual employer's unemployment tax rate calculation for 2022,
2023, and 2024.
The Missouri 2023 SUI tax rates were dated December 5, 2022.
The contribution rate of an experience-rated employer may range from
0.0% to 6.975%. For experience-rated employers that are
participating in the workshare program, rates could range from 0.0%
to 9.765%. Both of these ranges include the maximum rate surcharge
and/or contribution rate adjustment. The rate payable by new
employers in 2023 is 2.511%. New construction and mining employers
also will pay 2.511% in 2023. Note, the new nonprofit employer
contribution rate is 1.00%. The taxable wage base decreases from
$11,000 in 2022 to $10,500 in 2023.
The Montana 2023 SUI tax rates are dated December 20, 2022.
For 2023, Schedule I remains in effect and there is also a 0.13%
Administrative Fund Tax (AFT) for minimum rated employers and a 0.18%
AFT for all other experience-rated employers. Rates range from 0.13%
to 6.30%. The taxable wage base increased to $40,500 for 2023 (from
$38,100 for 2022).
Nebraska unemployment tax rates for 2023 have been released.
Rates for experienced employers will range from 0% to 0.73% in 2023
for positive-rated employers (0% to 1.05% in 2022). The rate for
negative-rated employers will remain at 5.4%. The unemployment tax
rate for new non-construction employers (1.25%) and new construction
employers (5.4%) also will remain unchanged. The taxable wage base
will remain at $9,000. However, the taxable wage base will be $24,000
for employers in UI Tax Category 20.
The Nevada Department of Employment, Training and
Rehabilitation's (DETR) Employment Security Division (ESD) has
issued unemployment tax rate information for 2023. The new employer
tax rate continues to be 2.95%. The unemployment tax rate range for
experienced employers continues to be from 0.25% to 5.4% (consists
of 18 rate classes). While the unemployment tax rates continue to
range from 0.25% to 5.4% in 2023, an employer's tax rate may change
based upon the new reserve ratio changes for the 18 rate classes. In
addition, employers (except those assigned the maximum 5.4% tax
rate) pay a 0.05% career enhancement program tax.
The taxable wage base will increase to $40,100 ($36,600 in 2022).
New Hampshire 2022/2023 SUI tax rates were issued on
September 2, 2022. The rate tables remained the same (rates range
from 0.1% to 8.5%), the rate reduction remained 0.00% and the
Inverse Rate Surcharge of 1.5% remained added to negative balanced
employers. The Emergency Power Surcharge of 0.5% is not currently in
effect. The assigned rates are currently only effective for the
third quarter of 2022. The 2023 taxable wage base remains $14,000.
As a response to New Hampshire’s strong unemployment trust
fund, New Hampshire businesses will receive a 30% tax rate reduction
for the fourth quarter of 2022. The tax rate reduction is triggered
by state law when the fund maintains a balance of $250 million or
more for an entire calendar quarter. Despite an unprecedented surge
in benefit payments provided during 2020 and 2021, New Hampshire’s
unemployment trust fund is above pre-pandemic levels and is now back
over $300 million. According to the state’s unemployment insurance
tax rate chart, the fourth-quarter solvency-threshold tax rate
reduction for positive-rated experienced employers will be 0.5%, and
the surcharge for negative-rated experienced employers will decrease
to 1% from 1.5%. Including the aforementioned rate reduction,
unemployment tax rates for positive-rated experienced employers will
range from 0.1% to 2.1%. Rates for negative-rated experienced
employers will range from 3.8% to 8%. The unemployment tax rate for
new employers will be 2.2% for the fourth quarter of 2022.
Q1 2023: Unemployment tax rates for New Hampshire employers
remained unchanged for the first quarter of 2023. The fund balance
reduction is 0.5% and no emergency power surcharge applies.
Negative-rated employers (employers whose rates are assigned under
Schedule II or III) will continue to have an Inverse Rate Surcharge of
1.0% added to their tax rates during the first quarter of 2023. The
new employer tax rate remains 2.2%
Q2 2023: Due to maintaining a trust fund balance of at least
$350 million for an entire quarter, New Hampshire Employment
Security announced that for the second quarter of 2023: (1) the fund
balance reduction is 1% for positive rated employers (Schedule I),
up from 0.5% in the first quarter; (2) the emergency power surcharge
is 0% (no change from the first quarter of 2023); and (3) the
inverse rate surcharge assigned to negative rated employers
(Schedule II and III) is 0.5% for the second quarter of 2023 (1% in
the first quarter of 2023). As a result of the foregoing, rates
will be reduced by 0.50% for Q2 2023.
The bill aims to assist employers affected by
COVID-19. Specifically, the bill will assign the following
unemployment tax rate tables through fiscal year 2024:
Table C (rates range from 0.5% to 5.8%) for
fiscal year 2022 (from July 1, 2021 through June 30,
Table D (rates range from 0.6% to
6.4%) for fiscal year 2023 (from July 1, 2022 through
June 30, 2023), unless calculations call for a lesser
table to be in effect; and
(rates range from 1.2% to 7.0%) for fiscal year 2024
(July 1, 2023 through June 30, 2024), unless calculations
call for a lesser table to be in effect.
The New Mexico 2023 SUI tax rates are dated November 22,
2022. The Reserve Factor increased to 3.3445 and the Excess Claims
multiplier remained 10%. Rates range from 0.33% to 6.40%. Due to
legislation, the state has not used benefit charges and taxable
payroll from March 1, 2020 through June 30, 2021 in the rate
computation. The taxable wage base increased from $28,700 to $30,100
New York Announcement Relating to Future Wage Bases
New York has announced that future unemployment taxable
wage base are to increase as follows: (1) $12,500 in 2024; (2)
$12,800 in 2025; and (3) $13,000 in 2026. After 2026, the wage
base is permanently adjusted on January 1 of each year to 16% of
the state average annual wage, rounded up to the nearest $100. The
state average annual wage is established no later than May 31 of
each year. The average annual wage cannot be reduced from the
For 2023, 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 full range of rates with the normal,
subsidiary, and the Reemployment Service Fund taxes for 2023 are
2.1% to 9.9%. New employers pay a total rate of 4.1%, including the
subsidiary tax rate of 0.625% and the reemployment tax of 0.075%.
The taxable wage base increased from $12,000 in 2022 to $12,300 in 2023.
The North Carolina 2023 SUI tax rates were issued on
November 14, 2022. The state uses a basic rate computation, based
on a Standard Contribution Rate, to calculate the Unemployment
Insurance contribution rate. The Standard Contribution Rate
remained 1.9%. The rates range from 0.06% to 5.76%. The taxable
wage base increased from $28,000 to $29,600.
North Dakota’s 2023 contribution rates will range from 0.08%
to 1.25% for positive-balance employers and from 6.26% to 9.97% for
negative-balance employers. The new employer rate for positive-balance
non-construction employers will be 1.13% and the new employer rate for
negative-balance non-construction employers will be 6.26%. The new
employer rate for both positive-balance and negative-balance
construction employers will be 9.97%. The 2023 taxable wage base will
be $40,800 (from $38,400 in 2022).
2023 unemployment insurance tax rates in Ohio will range
from 0.3% to 9.8%. The tax rate for new employers in the
construction industry will rise to 5.6%, up from 5.5% in 2022. The
tax rate for all other new employers will remain 2.7% in 2023.
The tax rate for delinquent experienced employers will rise to
12.9%, compared to 12.8% in 2022. Ohio’s taxable wage base will
be $9,000 in 2023, unchanged from 2022.
Oklahoma 2023 SUI tax rates were issued on September 30,
2022. The state experience factor, conditional factor and
technology fund assessment will remain the same in 2023 as it was in
2022. Rates for Oklahoma employers will range from 0.3% to
9.2%. These 2023 rates will not be available on the state’s tax
portal until January 1, 2023. The 2023 wage base will increase from
$24,800 in 2022 to $25,700 in 2023.
The legislation modifies requirements regarding the
calculation and payment of unemployment insurance taxes to provide
employers immediate and long-term relief. The legislation:
Provides that the experience rating used to
determine an employer’s 2020 tax rate will also be used in
2022, 2023, and 2024;
adequacy percentages used to determine tax rate schedules;
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.
The Oregon 2023 SUI tax rates were issued on November 15,
2022. The rate schedule decreased from Schedule III to II, which
will result in most rates decreasing. Since this is an odd
numbered year, there is a 0.03% Wage Security Fund rate for the
first quarter (maximum rates are exempt). The 0.09% Supplemental
Employment Department Administration Fund rate is in effect for
all four quarters (maximum rates are exempt). The total of the
two surcharges for the first quarter is 0.12%. This does not
increase the rate. It is just offset. With HB 3389 (see above),
the 2023 statewide UI tax schedule is II, and the state is using
the 2020 computation period to compute 2023 rates. Therefore, the
computation period will run from July 1, 2016 to June 30, 2019.
The rates range from 0.70% to 5.40%. The taxable wage base
increased from $47,700 to $50,900 in 2023.
Unemployment tax rates for experienced employers will
continue to range from 1.4190% to 10.3734% in the 2023 tax year.
These rates include a 9.2% surcharge and 0.6% additional
contribution tax. The interest factor will not be in effect for
2023. Delinquent employers pay a basic rate that is 3.0% higher. The
new non-construction employer rate will remain at 3.8220% in 2023
and the new construction employer rate will be 10.5924% in 2023. The
new employer rates only include the 9.2% surcharge as the additional
contribution tax does not apply to new employers. The taxable wage
base will continue to be $10,000 in 2023. Employees must also make
unemployment tax contributions. The employee unemployment tax
withholding rate will increase to 0.07% in 2023 (0.06% in 2022).
This withholding is deducted from all of the employee's taxable
wages, not just up to the taxable wage base limit.
Contributory employers that have a sporadic employment
history (having filed "zero" returns during each quarter
of the last four years ending on the computation date or having been
inactive for less than five years) are assigned a standard rate of
6.4968% for 2023 (up from 6.1916% for 2022) if positive balanced, or
10.6464% (10.1968% for 2022) if negative balanced, while the base
SUI tax rate for experienced-rated employers for 2023 ranges from
1.4190% to 10.3734% (up from 1.2905% to 9.9333% in 2022).
Under prior law, a business must have made SUI contributions
for at least one quarter in 2020 or 2021 to qualify for a
potentially lower experience rate for fiscal year 2021. SB 1083
amends Pennsylvania SUI law by clarifying that a business may
qualify for a potentially lower experience rate if it made no SUI
contributions because it was temporarily shut down for an extended
period due to the Governor’s COVID-19 disaster declaration.
Specifically, the law states that if an employer temporarily
ceased operations as a result of the emergency disaster declaration
under 35 Pa.C.S.A. Section 7301(C) at any time after March 6, 2020
and prior to July 1, 2021, the employer will be deemed to have paid
SUI contributions during fiscal year 2021 provided that the employer
actually paid SUI contributions for one or more quarters in either the
fiscal year ending on June 13, 2021 or in the immediate preceding
fiscal year ending on June 13, 2020.
The Puerto Rico 2023 SUI tax rates were dated December 15,
2022. For 2023, the Schedule increased from A to G. Rates range from
3.4% to 5.40%. Included in the rate, all employers, except those
assigned the maximum rate (5.4%), are assessed a surtax of 0.1% -
1.0% depending on their assigned rate. This surtax is included in
the total rate. The contributions for this rate are calculated as a
separate item on the quarterly contribution report. The taxable wage
base remains $7,000.
The bill contains a provision that appropriates $100 million
to the state's unemployment trust fund to reduce unemployment tax
rates in 2023. Specifically, the language in the bill instructs
the Rhode Island Director of Labor and Training to allocate the
appropriations to the employment security fund prior to determining
the experience rate for each eligible employer for calendar year
2023. Like in several other states, unemployment tax rates and
schedules may be determined based on the balance in the unemployment
trust fund. 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 tax year 2022, unemployment tax rates were determined under
The unemployment tax rates for experienced employers will
move down to Schedule G for 2023. Rates range from 1.1% to 9.7% in
2023. The new employer rate will decrease from 1.19% to 1.09% in
2023. All of the above rates include a 0.21% job development
assessment. The taxable wage base will increase from $24,600 to
$28,200 in 2023 for most employers. The taxable wage base will
also increase for employers in the highest tax rate bracket to
$29,700 in 2023.
The 2023 tax rates for businesses will decrease or remain
unchanged from their 2022 levels. This is the 10th year in a row
that UI contribution rates will remain unchanged or decrease. For
2023, rates will be lower for rate classes 2-19 by an average of
15.5% compared to 2022 levels. Employers may be assigned different
rate classes for 2023, depending on unemployment claim activity.
For 2023, there will be no solvency surcharge imposed. The
effective new employer tax rate (which is employer Tax Rate Class
12) for 2023 will be 0.450%, down from an effective rate of 0.550%
in 2022. Also, for 2023, the total maximum tax rate, which is
assessed on employers in Rate Class 20, remains at 5.46%
The state has announced that there will be no changes to the
unemployment tax rate schedules for 2023. Experienced employer
unemployment tax rates will continue to be determined under Schedule
B. Rates range from 0% to 9.3%, including an investment fee that
ranges from 0% to 0.55% depending on an employer's reserve ratio.
Experienced employers with a reserve ratio of less than 2.25% must
also pay a 0.02% administrative fee on wages. New non-construction
employer rate for the first year of business is 1.2%, and 1% for the
second and third years of business. New construction employers in
their first year of business will pay 6.0%. New construction employers
in their second and third year of business will pay 3.0%. If a new
employer has a negative account balance after their first year they
may remain at the 1.2% and 6.0% rates respectively. The new employer
rates include a 0.55% investment fee. The 2023 taxable wage base will
remain at $15,000.
New legislation signed on February 1, 2023, will cut
employer contributions to unemployment by 0.5%. Specifically, the
legislation creates a new tax schedule when the balance in the
Unemployment Trust Fund at the end of the fiscal year is at or above
an average high-cost multiplier (AHCM) of 1.5. An AHCM of 1.0 means
enough funds exist to cover a full year of benefits during a
recession. Currently, employer tax rates are based on the AHCM of
the fund at the end of each fiscal year. Additionally, the bill
adjusts the trigger point for a surcharge – this is an additional
tax imposed when the balance of the fund drops below $11 million.
The surcharge trigger will no longer be tied to a dollar amount, but
to an AHCM ratio. Through December 31, 2023, Schedule A (rates range
to 9.45%) is in effect when the AHCM is less than 1.60 and Schedule
B (rates range to 9.3%) is in effect when the AHCM is greater or
equal to 1.60. Beginning January 1, 2024, Schedule A (rates range to
9.45%) is in effect when the AHCM is less than 1.60 and Schedule B
(rates range to 9.3%) is in effect when the AHCM is less than 1.5
and greater or equal to 1.3, and Schedule C (rates range to 8.80%)
is in effect when the AHCM is greater or equal to 1.5.
Effective July 1, 2022 through December 31, 2022, Premium
Rate Table 6 remains in effect. Employer rates range from 0.01% to
2.3% for positive-balance employers and from 5.0% to 10.0% for
negative-balance employers. Effective January 1, 2023 to June 30,
2023, Premium Rate Table 6 will continue to be in effect.
The employer SUI tax-rate schedule continues to be the
lowest possible for fiscal year 2023 (July 1, 2022, to June 30,
2023). Because the SUI trust fund balance exceeded $1 billion as of
June 30, 2022, SUI tax rates for experience-rated employers will
continue to range from 0.01% to 10.0% on Premium Rate Table 6. Note
that though SUI tax rate notices are issued on an annual fiscal-year
basis, the SUI tax-rate schedule may change as of January 1, 2023,
increasing SUI tax rates for the first and second quarters of 2023,
if the level of the state's UI trust fund balance falls below $1
billion as of December 31, 2022.
Employers continue to pay SUI taxes on a taxable wage base
of $7,000 for tax year 2022. The 2023 wage base will be based on the
UI trust fund balance as of December 31, 2022. If the UI trust fund
balance continues to exceed $1 billion at that time, the taxable wage
base will remain at $7,000 for calendar year 2023.
By February 1 of each year, the Department must report to
the state legislature the UI trust fund balance as of the prior
December 31, for purposes of determining the SUI taxable wage base
for the calendar year. If the UI trust fund balance on December 31
of any year is less than $900 million, the taxable wage base is
$9,000. If the trust fund balance is above $900 million, but less
than $1 billion on December 31, the taxable wage base is $8,000.
If the trust fund balance exceeds $1 billion on December 31, the
taxable wage base is $7,000.
Contribution rates in Texas range from 0.23% to 6.23% for
2023. Also, for 2023, the replenishment ratio is 1.27, the
replenishment tax rate is 0.13%, and the obligation assessment ratio
is 0.00. The employment and training investment assessment rate in
2023 is 0.10%. The 2023 Deficit Tax Ratio is 0.00 percent. There is
no Deficit Tax Rate for 2023 nor is there an Interest Tax Rate
assessed for 2023. The taxable wage base remains at $9,000.
The bill sets limits on the social contribution rate and
reserve factor for the next three years. For calendar year 2022
only, if the calculation of the social contribution rate under
Subsection (2)(A) is greater than 0.003, the social contribution
rate for that calendar year is 0.003. For calendar years 2023 and
2024 only, if the calculation of the social contribution rate under
Subsection (2)(a) is greater than 0.004, the social contribution
rate for that calendar year is 0.004. For calendar year 2022 only,
the division may not set the reserve factor to be more than 1.1500;
and for calendar years 2023 and 2024 only, the division may not set
the reserve factor to be more than 1.2000.
Unemployment tax rates for experienced employers will
continue to range from 0.3% to 7.3% in 2023. New employer rates
vary by industry, except new, out-of-state contractors are
assigned the 7.3% maximum tax rate. The social cost rate will
remain 0.3% in 2023. For 2023, the reserve factor is 1.10. The
taxable wage base will increase from $41,600 to $44,800 in 2022.
Effective July 1, 2022, the Vermont contribution rate
schedule for employers will move from Schedule III to Schedule I.
Rates under Schedule I range from 0.4% for Rate Class 0 to 5.4% for
Rate Class 20. In addition, the taxable wage base will decrease from
$15,500 in 2022 to $13,500 in 2023.
The Virginia 2023 SUI tax rates were dated December 9, 2022.
The Fund Balance Factor increased from 50% to 55%, the Fund Building
Charge decreased from 0.20% to 0.00%, and the Pool Cost Charge
remained 0.03% for the 2023 rate year. The rates range from 0.13% to
6.23%. Benefits were not charged to employers for fiscal years ending
July 1, 2020 and July 1, 2021 respectively. However, if the 2021 rate
is lower than the calculated 2023 rate, revised rates were issued to
affected employers assigning the lower rate for 2023. The taxable wage
base remains at $8,000.
The Virgin Islands 2023 SUI tax rates were dated January 16,
2023. Rates range from 2.50% to 6.00% with the majority being the
minimum 2.50%. The New Employer Rate is 2.00% The taxable wage base
is $30,200 for 2023 (from $30,800 for 2022).
The legislation has a number of provisions designed to
provide unemployment tax relief to employers. The legislation sets
the maximum social tax as follows: (1) 0.50% for 2021; (2) 0.75% for
2022; (3) 0.80% for 2023; (4) 0.85% for 2024; and (5) 0.90% for 2025
and suspends the solvency surcharge for 2021 to 2025. From February
8, 2021 until May 31, 2026, the 10% Voluntary Contribution
Program (VCP) surcharge is not charged and the VCP payment
deadline is extended to March 31. The minimum amount of a voluntary
contribution must result in a recomputed benefit ratio at least two
rate classes lower than the original rate class; and only employers
who have moved up at least eight rate classes may use the program.
The Washington 2023 SUI tax rates are dated December 9,
2022. The Flat Social Cost rate, which determines the tax rates on
the table, increased from 0.50% to 0.60% for all rate classes.
Rates range from 0.27% to 6.03% except for penalty rates. The
penalty rates range from 1.25% to 8.15%. The state introduced a
new table with lower rates for employers with less than 10
employees. This was put into effect with the passage of SB 5873,
which reduces the 2023 social tax rates for employers who report
10 or fewer employees during the fourth quarter of 2021. The
taxable wage base increased from $62,500 in 2022 to $67,600 in 2023.
Unemployment tax rates for experience rated employers
continue to range from 1.5% to 8.5% in 2023. Employers with a
debit balance (paid out more in unemployment benefit claims than
paid in unemployment tax) are assessed a surtax of 1.0%. The tax
rates for these employers range from 6.5% to 8.5%, including the
surtax. The new employer rate remains at 2.7%, except that foreign
businesses engaged in the construction trades will pay 8.5%. The
wage base remains $9,000 in 2023.
The legislation locks unemployment tax rate Schedule D in
effect through 2023. Contribution rates, including a solvency
surcharge, for Schedule D range from 0% to 12% for employers with
payroll under $500,000, and from 0.05% to 12% for employers with
payroll of $500,000 or more. Schedule D is the lowest contribution
rate schedule. Typically, the unemployment tax rate schedule depends
on the level of the state's unemployment trust fund. This bill
requires Schedule D be in effect regardless of the trust fund level
as of June 30, 2021 and June 30, 2022. However, the bill provides
that it applies only if the 2021-23 budget bill, as enacted,
provides for transfers of $60,000,000 in each of fiscal years
2021-22 and 2022-23.
The Wyoming 2023 SUI tax rates were dated December 30, 2022.
The total of all three constant factors used in the rate computation
remained 0.00% for most employers and 0.14% for employers with zero
benefit charges, resulting in lower rates. Rates range from 0.00% to
8.50%. The taxable wage base has increased to $29,100 for 2023 (from
$27,700 for 2022).
The COVID-19 pandemic caused a depletion of state
unemployment trust funds used to pay unemployment benefits,
prompting many states to take action to mitigate potential increases
in tax rates. While it is prudent for employers to be aware of the
direction of future SUI tax rates, it is more important than ever
for employers to take their own actions to help mitigate future
Diligently adjudicating unemployment claims
Auditing benefit charges and timely appealing those
that appear improper
quarterly contribution and wage reports are filed timely
Identifying and reconciling any outstanding
liabilities on state unemployment accounts
Utilizing available state-specific rating strategies
to lower SUI tax rates (e.g., voluntary contributions, joint
account formation, negative write-off payments, payroll
variation elections, etc.)
To keep up-to-date, please visit our Employer Unemployment
Insurance Resource Center. The site includes a 2023 Tax Guide
intended to assist employers in identifying potential risks associated
with increases in SUI tax costs from 2022 to 2023 (e.g., changes in
minimum and maximum SUI tax rates, changes in wage bases, etc.)
Please reach out to your Equifax representative to help
address potential risks associated with the current unemployment
landscape. Not a current client? Please feel free to contact our Employment Tax Consulting
Group with any questions.
Per Average Employer Contribution Rates by State
issued by the U.S. Department of Labor.
Per data obtained from the FiscalData (an
official website jointly created by the U.S. Department of the
Treasury and the Bureau of the Fiscal Service).
Per respective Unemployment Insurance Data Summary reports
published by the U.S. Department of Labor and TreasuryDirect
(an official website of the U.S. Department of Treasury).
Per Comparison of State Unemployment Insurance Laws
issued by the U.S. Department of Labor, Employment and Training
Per Average Employer
Contribution Rates by State issued by the U.S. Department of
Labor. Net Trust Fund Balances per respective Unemployment
Insurance Data Summary reports published by the U.S. Department of
The information provided is intended as general
guidance and is not intended to convey any tax,
benefits, or legal advice. For information pertaining to
your company and its specific facts and needs, please
consult your own tax advisor or legal counsel. Equifax
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