Monthly Archives

June 2020

Wisconsin To Waive Unemployment Benefit Charges

The Wisconsin Department of Workforce Development has announced that it will not include unemployment benefits charged from March 15, 2020 to June 30, 2020 when calculating employer’s unemployment tax rates for 2021.

Under Emergency Rule 2018, published June 29th in the state administrative register, the Department is to assume that all benefits charged from March 15 to June 30 are related to the COVID-19 pandemic for purposes of calculating 2021 tax rates.

The calculation of an employer’s 2021 tax rate generally would include benefits charged up to June 30, 2020, but Wisconsin Act 185 signed in April requires virus-related benefits to be charged to the state unemployment balancing account instead of to individual employers.

The Department has indicated that redirecting the charges from employer’s accounts to the general balancing account will have to be completed manually and is expected to take thousands of hours. The process is not completed by June 30th because of the high volume of benefit claims, so the rule is to allow the Department to avoid charging employers for virus-related benefits in 2021.

As always, if there are any questions please do not hesitate to contact us or visit our website at https://thomas-and-company.com/news/.

Nevada Unemployment Taxable Wage Base to Rise in 2021

The Nevada Department of Employment, Training & Rehabilitation announced today that the unemployment taxable wage base is set to rise to $33,400 in 2021, up from $32,500 in 2020.

The change to the taxable wage base takes effect Jan. 1, 2021.

The Department’s unemployment tax rates for 2021 are expected to be finalized in December.

As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.

IRS Releases Draft of 2020 Federal Unemployment Tax Return Form 940

On June 24, 2020, the Internal Revenue Service issued a draft version of the 2020 Form 940, Employer’s Annual Federal Unemployment Tax Return.

The draft Form 940, which is used by employers to report their annual federal unemployment tax liability, was not substantially revised from the 2019 version of the form.

A draft version of the form’s 2020 Schedule A, Multi-State Employer and Credit Reduction Information, was also released and did not contain substantial changes. The schedule, which is used to report additional tax owed because of federal unemployment tax credit reductions, lists the U.S. Virgin Islands as the only potential credit-reduction jurisdiction for 2020.

Finalized versions of Form 940 and Schedule A are expected to be released in November and are to reaffirm credit reduction percentages, which are to be finalized on November 10th by the U.S. Department of Labor.

As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.

Washington Unemployment Taxable Wage Base to Rise in 2021

The Washington Department of Employment Security announced today that the unemployment taxable wage base is set to rise to $56,500 in 2021, up from $52,700 in 2020.

The change to the taxable wage base takes effect Jan. 1, 2021.

The Department’s unemployment tax rates for 2021 are expected to be finalized in December.

As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.

Vermont Unemployment Tax Rates Decrease for 2020/2021

On June 23, 2020, the Vermont Department of Labor reported that tax rates for experience-rated employers are set to decrease for the fiscal year ending June 30, 2021.

Effective July 1, 2020 through June 30, 2021, tax rates for experienced employers are to be determined with Schedule 1 and will range from 0.40% to 5.40%. Tax rates under Schedule 1 are generally lower than those under Schedule 3, which was in effect from July 1, 2019 through June 30, 2020.

The new-employer tax rate for non-construction industry employers will remain at 1.00% during this time. For new employers in the construction industry, tax rates are set to decrease. The new-employer tax rate for the buildings construction industry (Code 236) is to be 3.50%, down from 4.00%; the new-employer tax rate in the heavy and civil engineering construction industry (Code 237) is to be 4.90%, down from 5.60%; and the new-employer tax rate in the special trade construction industry (Code 238) is to be 4.20%, down from 4.80%.

Tax rates for fiscal year ending June 30, 2021 were calculated based on unemployment tax data from calendar year 2019 and do not take into account the impact of the COVID-19 pandemic, which may affect rates in later years, the department said in a news release.

As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.

Washington Unemployment Taxable Wage Base to Rise in 2021

The Washington Department of Employment Security announced today that the unemployment taxable wage base is set to rise to $56,500 in 2021, up from $52,700 in 2020.

The change to the taxable wage base takes effect Jan. 1, 2021.

The Department’s unemployment tax rates for 2021 are expected to be finalized in December.

 

As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.

Unemployment Weekly Claims Report for the Week-Ending May 30, 2020

The Unemployment Insurance Weekly Claims report for the week ending May 30, 2020 has been released by the Department of Labor.

  • Seasonally adjusted initial claims: 1,877,000
  • 4 week moving average: 2,284,000
  • Seasonally adjusted insured unemployment rate: 14.8%
  • Seasonally adjusted insured unemployment number: 21,487,000
  • 4-week moving average: 22,446,250
  • Number of unadjusted claims: 1,603,000
  • Unadjusted insured unemployment rate: 13.2%
  • Unadjusted number claiming UI benefits: 19,295,200

The full news release report can be downloaded here.

 

Our office will monitor COVID-19 updates closely and will send out additional announcements as we become aware of any updates. You can also review these updates on our website at https://www.thomas-and-company.com/covid-19/ too.

 

Please reach out to your representative with any questions.

 

Unemployment Weekly Claims Report for the Week-Ending May 23, 2020

The Unemployment Insurance Weekly Claims report for the week ending May 23, 2020 has been released by the Department of Labor.

  • Seasonally adjusted initial claims: 2,123,000
  • 4 week moving average: 2,608,000
  • Seasonally adjusted insured unemployment rate: 14.5%
  • Seasonally adjusted insured unemployment number: 21,052,000
  • 4-week moving average: 22,722,250
  • Number of unadjusted claims: 1,914,958
  • Unadjusted insured unemployment rate: 13.1%
  • Unadjusted number claiming UI benefits: 10,051,706

The full news release report can be downloaded here.

 

Our office will monitor COVID-19 updates closely and will send out additional announcements as we become aware of any updates. You can also review these updates on our website at https://www.thomas-and-company.com/covid-19/ too.

Please reach out to your representative with any questions.