Several states have announced changes to their unemployment taxable wage bases, effective 2014. A state unemployment taxable wage base is the maximum amount on which an employer must pay unemployment taxes for each employee. For example, an employer in Oregon must pay unemployment taxes on the first $35,000 an employee earns throughout the 2014 calendar year.
Why is this information important?
Several states have an upcoming April 30th deadline to submit their 1st quarter 2014 wage report. Unemployment taxes must be paid on the correct wage base to avoid any penalties.
An increase in the taxable wage base can also mean an increase in unemployment tax cost per employee. For example, if an employer in North Dakota had a 1.0% unemployment rate in 2013, their cost per employee would be $318 ($31,800 x 1.0%). In 2014, that cost would increase to $336, should their tax rate remain at 1.0% ($33,600 x 1.0%).
Nonprofit employers have options to avoid these increases. To request more information, complete the form to the right.
** For employers that pay the highest UI tax rate of 9.79%, the wage base is $22,100.
