In a letter from Colorado Governor John W. Hickenlooper and Treasurer Walker Stapleton, Colorado employers were informed of the benefits of a recent bond offering by the State of Colorado. UITF Was Financially Weak from 2008 Recession The Colorado Unemployment...
Rhode Island Changes 2012 Unemployment Taxable Wage Base Calculation
As part of the recently enacted fiscal-year 2012 state budget (article 4), Rhode Island changed the way in which the unemployment taxable wage base is calculated in §28-43-7 of the General Laws in C. 28-43. 2012 Will Be the First Year the New Formula Is Used Beginning...
NJ Lowers Unemployment Tax Rates for 2012 Rate Year
New Jersey Governor Chris Christie recently signed into law A-3819 (S-2730), which reduces the unemployment tax rates that employers would have otherwise had to pay during the 2012 rate year (July 1, 2011 through June 30, 2012). The rates will increase, however, from...
New Mexico Governor Martinez Vetoes Higher Unemployment Tax Rates
On April 8, 2011, Governor Susana Martinez vetoed portions of HB 59. The portion vetoed would have changed the contribution schedule from a floating schedule for 2012 to Schedule 3. Schedule 3 Seen as Counter-Productive According to Governor Martinez, “I do not...
Illinois Adds Unemployment Tax Surcharge and Increases Wage Base
Illinois Governor Pat Quinn recently signed HB 1030 into law. The new law adds an unemployment tax surcharge, increases the taxable wage base, and reduces maximum benefits, among other provisions. Surcharge Is for First Quarter of 2011 For the first quarter of 2011,...
Massachusetts Freezes Unemployment Tax Rate Schedule for 2011
Governor Deval Patrick recently signed legislation that will provide immediate relief to Massachusetts’ businesses by freezing employer contributions to the Unemployment Insurance (UI) Trust Fund at current levels. This new law prevents a scheduled rate hike from...
Question of the Week: What is Place of Residence?
This week’s question comes from Bonnie, a business owner. We tested our multi-state employees for unemployment purposes based on Localization of Services, Base of Operations, and Place of Direction or Control. For some employees we were able to determine the...
Question of the Week: What is Place of Direction or Control?
This week’s question comes from Kenneth, an HR Director. We tested our multi-state employees for unemployment purposes based on Localization of Services and Base of Operations. For some employees we were able to determine the appropriate state, but for some we...
Question of the Week: What is Base of Operations?
This week’s question comes from Angela, an office manager. We tested our multi-state employees for unemployment purposes based on Localization of Services. For some employees we were able to determine the appropriate state, but for some we weren’t. Now we need to test...
Question of the Week: What is Localization of Services?
This week’s question comes from Matthew, a business owner. I read that we need to cover employees for unemployment purposes based on “Localization of Services”. What is Localization of Services? Answer: The general rule for employees who work in more than one state is...
NJ Governor Signs Law Reducing Employer Rates for 2011
New Jersey Governor Chris Christie recently signed into law S-1813, which reduces the unemployment tax rates that employers would have otherwise had to pay during the 2011 rate year (July 1, 2010 through June 30, 2011). During the 2010 rate year (July 1, 2009 through...
Question of the Week: Where Do I Pay Unemployment Tax for Employees Who Work in More than One State?
This week’s question comes from Julia, a business-owner. We have employees who work in more than one state. I understand how to determine which state’s income tax to withhold, but I don’t know what to do about unemployment tax. Where do I pay unemployment tax for...
Massachusetts Releases 2010 Employer Contribution Rates for Unemployment Taxes
The Massachusetts Division of Unemployment Assistance (DUA) has released the 2010 employer contribution rates for unemployment taxes. Employers may check their rate using QUEST. Rates were determined using Schedule E, the same schedule as was used in 2009. Even though...
Iowa to Discontinue Use of Magnetic Media for Unemployment Insurance Filings
Effective February 26, 2010, Iowa Workforce Development will no longer accept magnetic media (CDs or diskettes) for filing unemployment insurance data. Any magnetic media submitted after February 26, 2010 will not be processed. The options for employers required to...
Unemployment Benefits Not Fully Taxable in 2009
Under the American Recovery and Reinvestment Act of 2009 (ARRA), the first $2,400 of unemployment benefits received by a taxpayer during 2009 are not subject to federal income tax. The Internal Revenue Service (IRS) recently released IR-2009-29, First $2,400 of...
Idaho Unemployment Wage Base Increases to $33,200
Roger B. Madsen, Director of the Idaho Department of Labor announced recently that the 2009 unemployment wage will increase from $32,200 to $33,200. In addition, tax rates (including the workforce rate) will range from 0.447% to 5.4% and the standard rate will be...
Illinois Unemployment Wage Base to Increase to $12,300
Maureen T. O’Donnell, Director of the State of Illinois Department of Employment Security announced recently that the 2009 unemployment wage base has increased from $12,000 to $12,300. O’Donnell, appointed by Governor Rod R. Blagojevich in August, had served as Acting...
Minnesota Increases Taxable Wage Base for 2009
On or before June 30 of each year the Commissioner of the Minnesota Department of Employment and Economic Development must calculate an amount equal to sixty percent of Minnesota's average annual wage, rounded to the nearest $1,000. This amount is the taxable wage...
Washington Employment Security Department Files Emergency Rule Following Supreme Court Decision
In late June, the Washington State Supreme Court ruled that the eligibility criteria listed in the state law were not exclusive. Therefore, if applicants for unemployment benefits had other good reasons to quit their jobs, it was within the discretion of the...
Oregon Supreme Court Rules Directors’ Fees Not Subject to State Unemployment Tax
The Oregon Supreme Court recently ruled in Necanicum Investment Co. v. Employment Department, SC S055231, July 24, 2008, that directors’ fees paid to a company’s board of directors are not wages for unemployment tax purposes, since the “directors are not ‘employed by’...
Alaska Governor Palin Signs Unemployment Benefits Increase into Law
Alaska Governor Sarah Palin recently signed Senate Bill 120 into law. Under the new law, for new unemployment insurance benefit years beginning after December 31, 2008, the maximum weekly benefit will increase from $248 to $370 and the qualifying amount for...
New Jersey Wage Base to Increase to $28,900 for 2009
The wage base for New Jersey unemployment insurance, temporary disability insurance, and family leave insurance will increase from $27,700 to $28,900 for 2009. Contact Vision Payroll if you have any question on this increase.
State Agency Links
Links to State Unemployment Tax Agencies Alabama (334) 242-8830 www.dir.alabama.gov Alaska (888) 448-3527 www.labor.state.ak.us Arizona (602) 771-6601 www.azdes.gov/esa/uitax/uithome.asp Arkansas (501) 682-3798 www.state.ar.us/esd California (888) 745-3886...
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