CALIFORNIA – FUTA Tax Reduction for 2022 Confirmed
The California Employment Development Department (EDD) announced that the state will not pay back the Federal Unemployment Account (FUA) loans by the November 10, 2022, deadline so there will be a FUTA credit reduction for CA in 2022 of 0.3%. The total FUTA tax will increase from $42 to $63 per employee. The additional FUTA tax will be due on January 31, 2023.
PENNSYLVANIA – Erroneous Pandemic Unemployment Overpayment Notices sent to Thousands
An error caused by a vendor for the State of Pennsylvania’s Department of Labor and Industry generated several thousand letters erroneously alerting claimants that they have a Pandemic Unemployment Assistance (PUA) overpayment that must be repaid by December 1, 2022. The letter indicates that the claimant’s right to appeal has expired and threatens to seize their state or federal tax refunds to repay the overpayment and may also include other financial penalties. The letter directs the claimants to mail checks to the Pennsylvania Workforce Commission – an agency that does not exist. If you have an employee who received a letter that matches this scenario, the claimant can ignore this notification and you can let them know that the PA DOL will reach out to anyone who received the incorrect notices with more information.
SOUTH CAROLINA – Tax Cuts Announced for 2023
Governor McMaster announced that the South Carolina unemployment insurance tax rates for 2023 will decrease or remain the same in 2023. Experience rated employers can have a tax rate that will range from 0.06% to 5.46% based on the 2023 tax rate table. Because SC has built up a sufficiently high trust fund balance, there will not be a solvency surcharge added to the unemployment rates in 2023. For the full press release, please visit the SC DEW site.
WASHINGTON – Fourth Quarter Tax Filing Changes
When employers or their agents file their fourth quarter unemployment taxes online with the Washington Employment Security Department (ESD), they will be required to upgrade to the latest version of the Employer Account Management Services (EAMS). Employers who are eligible to upgrade will see a notification when logging into the system. If you have any questions about the new system, you can register for a Webinar hosted by WAS ESD on December 9th. Once the employer accounts have been upgraded, employers should take the following into account:
• If you file a combined unemployment tax report for multiple employers in one file, you need to use a new bulk filing format specification.
• If you file an unemployment tax report for yourself or one employer at a time, the format has changed. Learn more on the WA ESD website.
• When you log into SecureAccess Washington (SAW) in the future, choose the new version of EAMS to file your taxes. You won’t be able to use the old version of EAMS to file after you upgrade.
Additionally, all employers will be required to report the Standard Occupational Classification (SOC) codes starting with the fourth quarter, 2022 reports. For more information about SOC Code reporting or to join a webinar on November 14, 2022, please visit the WA ESD site.
THOMAS & COMPANY SUPPORT CENTER – Holiday Hours
A quick reminder that our Customer Support Center will be closed for Thanksgiving on Thursday, November 24. On Friday, November 25, our support center will close 2 hours early at 5:00 pm Central. Thank you in advance for your understanding.
