All Posts By

Kathy Wilson

Connecticut Unemployment Tax Rates Hold Steady for 2021

The Connecticut Department of Labor announced that unemployment tax rates are not to change for 2021.

Effective January 1, 2021, unemployment tax rates for experienced employers are to range from 1.90% to 6.80%. The rates are to include a fund-solvency surtax of 1.40%. The tax rate for new-employers is set to be 3.00% for 2021, a decrease from 3.20% in 2020.

Connecticut’s unemployment-taxable wage base is to remain at $15,000 in 2021, unchanged from 2020.

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

California Unemployment Tax Rates Hold Steady for 2021

The California Employment Development Department announced that unemployment tax rates are not to change for 2021.

Effective January 1, 2021, unemployment tax rates for experienced employers are to be determined with Schedule F+. As a result, tax rates for experience-rated employers will continue to range from 1.50% to 6.20%. Similarly, tax rates for new-employers in California will remain at 3.40% for 2021.

Additionally, positive-rated employers and new-employers are to be assessed an employment training tax of 0.10% for 2021, also unchanged from 2020.

California’s unemployment-taxable wage base is to remain at $7,000 in 2021, unchanged from 2020.

The lack of changes leaves industry experts asking why the EDD isn’t being more proactive. California continues to have the lowest taxable wage base in the country even though it is one of the highest average wage states in the union. Couple that with the very large Title XII loan balance (as of today’s writing, the balance is $14.5 billion and rising), and one could ask why the EDD doesn’t index the taxable wage base to average wages to increase the solvency of the state trust fund and eliminate a future increase in federal unemployment taxes for 2022.

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

Kansas Unemployment Tax Rates Set to Rise in 2021

The Kansas Department of Labor announced that unemployment tax rates are set to increase for 2021.

Effective January 1, 2021, tax rates are to range from 0.20% to 5.40% for positive-rated employers and from 5.60% to 7.60% for negative-rated employers.

Additionally, the standard tax rate for new employers is to be 2.70% and the tax rate for new construction employers is to be 6.00%, unchanged from 2020.

For 2021, a solvency adjustment is not to be in effect. This in and of itself will contribute to higher rates for employers because it is a departure from 2020 where a solvency adjustment was in effect and reduced unemployment tax rates by 0.50%.

The unemployment-taxable wage base for 2021 is to remain at $14,000, unchanged from 2020.

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

Social Security Wage Base Rises to $142,800 for 2021

The Social Security (Old-Age, Survivors, and Disability Insurance) taxable wage base is to increase to $142,800 for 2021, up from $137,700 for 2020, the Social Security Administration announced October 13, 2020.

The maximum 2021 Social Security component of the Federal Insurance Contributions Act tax payable by each employee is $8,853.60, which is 6.20% of the taxable wage base, up from $8,537.40 for 2020. Employers match the employee amount with an equal contribution.

The Medicare (Hospital Insurance) tax rate remains 1.45% and is applicable to all wages paid during the year. An additional Medicare tax of 0.90% applies to individuals with annual earned income of more than $200,000, and $250,000 for married couples filing jointly, the agency said. While employers are required to pay a matching 1.45% portion of the standard Medicare tax, employers are not required to pay a matching 0.90% portion of the additional Medicare tax.

For 2021, an employee who earns exactly $142,800 is subject to a total FICA tax (Social Security tax plus Medicare tax) of $10,924.20 ($8,853.60 + $2,070.60), up from $10,534.05 for 2020.

Employees are to earn one credit for each $1,470 of earnings paid in 2021, up from $1,410 in 2020, the SSA said. Employees may earn a maximum of four credits in a year. Those who receive the maximum wages taxable under Social Security in any year also receive four coverage credits. Employees must be credited with a certain amount of work earned under Social Security to qualify for benefits.

The Social Security earnings limit for workers who reach full retirement age increases to $50,520 in 2021, up from $48,600 in 2020, the SSA said. The earnings limit applies only to workers who retire in the year they reach retirement age. After earnings reach this limit, $1 in benefits is withheld for every $3 in earnings exceeding the limit only in those months preceding the month full retirement age is reached. There is no limit on earnings from the full retirement-age month and later.

The earnings limit for workers who retire before reaching full retirement age increases to $18,960 in 2021, compared with $18,240 in 2020, the SSA said. One dollar in benefits is to be withheld for every $2 in earnings that exceed this limit, the SSA said.

The SSA also said a cost-of-living increase of 1.30% is to take effect for 2021, compared with 1.60% in 2020, affecting several thresholds for benefits and coverage.

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

Arkansas Unemployment Taxable Wage Base to Rise in 2021

The Arkansas Department of Workforce Services announced today that the unemployment taxable wage base is set to rise to $10,000 in 2021, up from $7,000 in 2020.

Unemployment tax rates for experienced employers are to range from 0.30% to 6.20% in 2021, and the maximum tax rate for negative-rated employers assessed an additional contribution is to be 14.20%. These rates include a solvency surtax of 0.20% and are unchanged from 2020.

The tax rate for new employers in 2021 is to be 3.10%, unchanged from 2020.

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

Wisconsin Unemployment Tax Rates Hold Steady for 2021

The Wisconsin Department of Workforce Development announced that unemployment tax rates are not to change for 2021.

Effective January 1, 2021, unemployment tax rates for experienced employers are to be determined with Schedule D, unchanged from 2020. For experienced employers with a taxable payroll of less than $500,000 over the 12-month period ended June 30, 2020, rates are to range from zero to 12%. For employers with taxable payroll of at least $500,000, rates are to range from 0.05% to 12%. These rates include a solvency surtax.

For 2021, the standard tax rate for new employers with taxable payroll of less than $500,000 is to be 3.05%, and the rate for those with taxable payroll of at least $500,000 is to be 3.25%, unchanged from 2020.

For new construction employers with taxable payroll of less than $500,000, the unemployment tax rate is to be 2.90% for 2021, down from 3.30% in 2020. For those with taxable payroll of at least $500,000, the tax rate is to be 3.10%, down from 3.45%.

Wisconsin’s unemployment-taxable wage base is to be $14,000 in 2021, unchanged from 2020.

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

Missouri Unemployment Taxable Wage Base to Drop in 2021

The Missouri Division of Employment Security announced today that the unemployment taxable wage base is set to decrease to $11,000 in 2021, down from $11,500 in 2020.

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

Unemployment tax rates are not to be changed for 2021. Tax rates for experience-rated employers are to range from 0.00 to 5.40%, including a rate adjustment of 12% for employers not assigned the maximum basic rate.

The unemployment tax rate for new-employers, including those in the mining industry and the construction industry, is to be 2.376% in 2021, unchanged from 2020.

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

Oklahoma Unemployment Tax Rates & Wage Base Set to Increase in 2021

The Oklahoma Employment Security Commission has confirmed that unemployment tax rates and taxable wage limits for calendar year 2021 will increase.

Effective January 1, 2021, Oklahoma’s experienced-employer unemployment tax rates are to be determined with Conditional Factor D, causing rates to range from 0.30% to 7.50%. This is an increase form 2020 where rates ranged from 0.10% to 5.50%. The new employer tax rate will remain steady at 1.50% for 2021.

Additionally, the unemployment taxable wage base is set to increase in 2021 to $24,000; up from $18,700 in 2020.

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

Montana Unemployment Taxable Wage Base to Rise in 2021

The Montana Department of Labor announced today that the unemployment taxable wage base is set to rise to $35,300 in 2021, up from $34,100 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.

Pennsylvania Unemployment Tax Rates Hold Steady for 2021

The Pennsylvania Department of Labor & Industry announced today that unemployment tax rates for 2021 will remain unchanged.

Effective January 1, 2021, total tax rates for experienced employers are to range from 1.2905% to 9.9333% and are to include a 0.75% state adjustment factor, a 5.40% solvency surcharge, and a 0.50% additional contributions tax.

The Interest Rate Factor will not be in effect for 2021.

For 2021, unchanged from 2020, the total tax rate for new non-construction employers is to be 3.689% and the total tax rate for new construction employers is to be 10.2238%. The rates include a 5.40% solvency surcharge.

Employees are to be assessed an unemployment tax rate of 0.06%, unchanged from 2020, with the tax deductible from wages.

Pennsylvania’s unemployment taxable wage base, which is to be $10,000 for 2021, does not apply with regard to unemployment tax assessed on employees.

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