Monthly Archives

July 2018

Unemployment Weekly Claims Report for W/E June 30, 2018

The Unemployment  Insurance  Weekly  Claims  report  for  the  week ending June  30, 2018 has been released by the Department of Labor.

  • Seasonally adjusted initial claims: 231,000
  • 4 week moving average: 224,050
  • Seasonally adjusted insured unemployment rate: 1.2%
  • Seasonally adjusted insured unemployment number: 1,739,000
  • Number of unadjusted claims: 231,072
  • Unadjusted insured unemployment rate: 1.2%
  • Unadjusted number claiming UI benefits: 1,611,767

The full news release report can be downloaded here.

SUTA Dumping: Class 1 Misdemeanor

Unemployment Insurance rates inherited from a previous business when changing ownership or acquiring another business can run higher or lower than the original rate, depending on the predecessor’s history. Premiums paid in and benefits paid out of the UI Trust Fund, as well as annual average payroll can affect this rate.

The act of moving employees around to different businesses for the purposes of shopping for a lower rate is considered unlawful and can be defined as SUTA (State Unemployment Tax) Dumping.

Businesses found guilty of SUTA Dumping can be assessed an 11% rate (the highest rate possible) for three straight years. A civil fine of $5,000 will also be charged with this Class 1 Misdemeanor.

Colorado: Self-Insured Employers

Self-insured employers should take note that effective on the first of July of this year, changes have been made to Rule 2: Workers’ Compensation Premium Surcharges.

It is now required to utilize the Division’s online surcharge application to report semiannual payroll as well as the job titles of all employees. It must be submitted under oath as well as in a flat file format.

The submission timelines are as follows:

Reporting Deadline: January 10, 2019

Payment Deadline: January 31, 2019

Assessment Period: January 1, 2019 – June 30, 2019

Reporting Deadline: July 10, 2019

Payment Deadline: July 31, 2019

The NCCI calculated experience rating is no longer required. From now on, an experience rating of 1.0 will be used overall.

For more information on these changes, visit www.colorado.gov/cdle/dwc

Texas: Disaster Unemployment Assistance

TWC (Texas Workforce Commission): Workers whose jobs were impacted by the recent storms and flooding in Hidalgo and Cameron Counties may be eligible for federal funding with Disaster Unemployment Assistance (DUA). A Presidential Disaster Declaration (FEMA-4377-DR) was made on the sixth of July and states unemployment insurance benefits if the following applies to you:

  • Have applied for and used all regular unemployment benefits from any state, or do not qualify for unemployment benefits
  • Worked or were self-employed or were scheduled to begin work or self- employment in the disaster area
  • Can no longer work or perform services because of physical damage or destruction to the place of employment as a direct result of the disaster
  • Establish that the work or self-employment they can no longer perform was their primary source of income
  • Cannot perform work or self-employment because of an injury as a direct result of the disaster
  • Became the breadwinner or major support of a household because of the death of the head of household

Please note the following:

Those affected may apply for benefits online, or by calling 800-939-6631 (M-F; 8-5).

Application deadline: August 10, 2018

The following documentation is required:

  • Social Security number
  • Copy of the most recent federal income tax form
  • Documentation to support that you were working or self-employed when the disaster occurred (check stubs, etc.)

All required documentation must be submitted within 21 days from the date you apply.

Documentation needs to be mailed to:

Texas Workforce Commission

UI Support Services Department, Attn: DUA

101 East 15th Street

North Lamar

Austin, TX, 78778-0001

Alternatively, you may fax your documents to: 512-936-3250.

More information can be found on the Texas Workforce Commission website.

Please visit WorkinTexas.com for job search assistance.

 

Tennessee Unemployment Tax Rates Hold Steady for 2018/2019

In a phone call today, sources from the Tennessee Department of Labor & Workforce Development indicated that unemployment tax rates for the one-year period from July 1, 2018 to June 30, 2019 will remain at Premium Table 6.

Tax rates in Tennessee have been at Premium Table 6 since July 1, 2015. This is the lowest table in the Department’s statutes.

Effective July 1, 2018, Tennessee’s experienced-employer unemployment tax rates will range from 0.01 percent to 10.0 percent.

Tennessee is one of four states that generally determines unemployment tax rates on a fiscal-year basis.

As always, if there are any questions please do not hesitate to contact us.

 

Delaware Increases Hourly Minimum Wage

Delaware’s Governor John Carney signed Senate Bill 170 (S.B. 170) on July 1, 2018, increasing the hourly minimum wage to $8.75 from $8.25. This increase is set to take effect January 1, 2019. The hourly wage is then set to increase to $9.25 an hour effective October 1, 2019. The federal minimum wage is $7.25 an hour.

Governor Carney also signed House Bill 483 (H.B. 483) that deals with the training wage and youth minimum wage. HB 483 states that employees who are at least 18 during the first 90 consecutive days of work may be paid a training minimum wage of at least $8.25 an hour, effective January 1, 2019. Additionally, employees who are younger than 18 may be paid a youth wage that is at least $8.25 an hour, effective January 1, 2019.

As always, if there are any questions please do not hesitate to contact us.

Extends Filing Deadline for Hawaii Storm Victims

The Internal Revenue Service has issued a statement extending deadlines for employment tax returns for Hawaii victims of severe storms, flooding, landslides, and mudslides that started April 13, 2018.

Employers with operations in the city of Honolulu and the island counties of Honolulu and Kauai, which were declared federal disaster areas, have until August 15, 2018, to file employment tax returns, the IRS said in Notice HI-2018-03.

Employment taxes still must be deposited by employers in the covered disaster areas.

As always, if there are any questions please do not hesitate to contact us.

New York Provides Optional Employer Compensation Expense Tax Guidance

Guidance on New York’s optional employer compensation expense tax, which is to take effect in 2019, was released July 3 by the state’s Department of Taxation and Finance. The memo released by the Department can be found at https://www.tax.ny.gov/pdf/memos/ecep/m18-1ecep.pdf.

Employers choosing to adopt the tax for 2019 must do so online by December 1, 2018. The levy is to start January 1, 2019, at a rate of 1.5 percent of employees’ compensation that exceeds $40,000. The tax is to increase to 3 percent in 2020 and to 5 percent in 2021.

An employee is subject to the tax if employed in New York, has a base of operations there, or is directed from the city.

Quarterly returns for the new payroll tax are to be filed electronically when withholding tax returns are filed, which is the last day of the month after each quarter. Payments are to be made when withholding payments are made, the department said.

New York was not planning to update its withholding tables to accommodate the payroll tax, but the state Form IT-2104, Employee’s Withholding Allowance Certificate, is to be updated to allow employees to adjust their withholding if the employer elects to pay the payroll tax.

As always, if there are any questions please do not hesitate to contact us.

Nevada Electronic Filing Requirements Change Effective July 1, 2018

Starting July 1, 2018, Nevada employers are to electronically file quarterly unemployment tax and wage reports, under an amendment to the state administrative code.

The Nevada Department of Employment, Training and Rehabilitation may grant a one-year waiver of the requirement for employers that demonstrate a lack of resources to file electronically, economic hardship, or other good cause.

Nevada has not previously required electronic filing for unemployment tax and wage reports.

As always, if there are any questions please do not hesitate to contact us.

Iowa Unemployment Taxable Wage Base to Rise in 2019

The Iowa Department of Workforce Development announced today that the unemployment taxable wage base is set to rise to $30,600 in 2019, up from $29,900 in 2018.

The change to the taxable wage base takes effect Jan. 1, 2019.

The Department’s unemployment tax rates for 2019 are expected to be finalized in December.

As always, if there are any questions please do not hesitate to contact us.