CALIFORNIA –Rate Schedules Remain the Same for 2023
California will continue to use Schedule F+ to determine the unemployment tax rates for 2023. Employers with a positive balance will see rates ranging from 1.5% to 5.9% and if the employer has a negative account balance the rate will be 6.2%. The new employer rate will be 3.4% and the taxable wage base remains at $7,000 for 2023. California will not allow voluntary contributions to be made to reduce tax rates in 2023.
CONNECTICUT – 2023 Tax Rates Will be Reduced to Offset the 2022 FUTA Tax Credit Reduction
Connecticut Department of Labor announced that they will be reducing the 2023 unemployment tax rates by 0.2% to help mitigate the FUTA Tax Credit Reduction that will occur because of an outstanding Title XII loan. As of November 10, CT was still carrying an outstanding balance on their Title XII, which means that CT employers will be assessed a FUTA credit reduction of 0.3% for 2022. The calendar year 2022 FUTA tax return payments will be due and payable in January 2023.
PENNSYLVANIA – Tax Relief for Small Employers Closed During the Pandemic
Governor Tom Wolf signed legislation that may impact employers who had to shut down during the pandemic. A number of PA employers were assigned a higher unemployment tax rate because they had no wages during the pandemic related shutdown. Under Act 156 of 2022, “an employer who ceased paying wages temporarily between March 6, 2020, and July 1, 2021, will have been deemed to have paid contributions during fiscal years 2020 and 2021 so long as the employer also paid one or more quarters in either the fiscal year ending June 13, 2020, or the fiscal year ending June 13, 2021.”
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.
