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United States Department of Labor’s Unemployment Claims Report – Week Ending October 9, 2021

The Unemployment Insurance Weekly Claims report for the week ending October 9, 2021 has been released by the United States Department of Labor.

Week Ending 10/9 Prior Week
Seasonally adjusted initial claims: 293,000 326,000
4 week moving average: 344,250 344,000
Seasonally adjusted insured unemployment rate: 1.90% 2.00%
Seasonally adjusted insured unemployment number: 2,593,000 2,714,000
4-week moving average: 2,737,750 2,765,000
Number of unadjusted claims: 277,632 258,909
Unadjusted insured unemployment rate: 1.70% 1.70%
Unadjusted number claiming UI benefits: 2,252,670 2,391,433

The full news release report can be downloaded here.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

Wisconsin Unemployment Tax Rates Hold Steady for 2022

The Wisconsin Department of Workforce Development announced that unemployment tax rates are unchanged for 2022.

Effective January 1, 2022, unemployment tax rates for experienced employers are to be determined with Schedule D, unchanged from 2021.  For experienced employers with a taxable payroll of less than $500,000 over the 12-month period ended June 30, 2021, rates are to range from zero to 12.00%.  For employers with taxable payroll of at least $500,000, rates are to range from 0.05% to 12.00%.  These rates include a solvency surtax.

For 2022, 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 2021.

For new construction employers with taxable payroll of less than $500,000, the unemployment tax rate is to be 2.50% for 2022, down from 2.90% in 2021.  For those with taxable payroll of at least $500,000, the tax rate is to be 2.70%, down from 3.10%.

Wisconsin’s unemployment-taxable wage base is to be $14,000 in 2022, unchanged from 2021.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions, please do not hesitate to contact us or visit our website for the latest news and updates.

Social Security Wage Base Rises to $147,000 for 2022

The Social Security (Old-Age, Survivors, and Disability Insurance) taxable wage base is to increase to $147,000 for 2022, up from $142,800 for 2021, the Social Security Administration announced October 11, 2021.

The maximum 2022 Social Security component of the Federal Insurance Contributions Act tax payable by each employee is $9,114, which is 6.20% of the taxable wage base, up from $8,853.60 for 2021.  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.  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 2022, an employee who earns exactly $147,000 is subject to a total FICA tax (Social Security tax plus Medicare tax) of $11,245.50 ($9,114 + $2,131.50), up from $10,924.20 for 2021.

Employees are to earn one credit for each $1,510 of earnings paid in 2022, up from $1,470 in 2021.  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 $51,960 in 2022, up from $50.520 in 2021.  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 $19,560 in 2022, compared with $18,960 in 2021. One dollar in benefits is to be withheld for every $2 in earnings that exceed this limit.

The SSA also said a cost-of-living increase of 5.90% is to take effect for 2022, compared with 1.30% in 2021, affecting several thresholds for benefits and coverage.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

 

United States Department of Labor’s Unemployment Claims Report – Week Ending October 2, 2021

The Unemployment Insurance Weekly Claims report for the week ending October 2, 2021 has been released by the United States Department of Labor.

Week Ending 10/2 Prior Week
Seasonally adjusted initial claims: 326,000 362,000
4 week moving average: 344,000 340,000
Seasonally adjusted insured unemployment rate: 2.00% 2.00%
Seasonally adjusted insured unemployment number: 2,714,000 2,802,000
4-week moving average: 2,765,000 2,797,250
Number of unadjusted claims: 258,909 298,255
Unadjusted insured unemployment rate: 1.70% 1.80%
Unadjusted number claiming UI benefits: 2,391,433 2,460,965

The full news release report can be downloaded here.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

Two Indiana Counties Will Increase Income Tax Rates on October 1, 2021

Effective October 1, 2021, the Indiana Department of Revenue has issued a new Departmental Notice No. 1How to Compute Withholding for State and County Income Tax. Two counties—Owen and Warrick—are increasing their county income tax rates.

  • Owen—increases to 0.025 from 0.016
  • Warrick—increases to 0.01 from 0.005

All 92 of Indiana’s counties impose a county income tax on residents of the county and on nonresidents—who do not reside in another Indiana county—with a principal place of business or employment in the county. Each county has one county income tax rate (i.e., tax rates are the same for residents and nonresidents). Employers withhold state and county income taxes from employees’ wages.

Over the last several months, we have received requests from our clients to assist in these areas and we heard them loud and clear.  As a result, Thomas & Company now offers State & Local Tax Account Registration Services!  We have team members with 20+ years of experience in tax registrations and we would be happy to assist you!  See our recent announcement here.

If you are interested in Thomas & Company partnering with your team to provide these additional services, feel free to contact Jeremy Muchnick, our Director of Tax Recovery Services, at jmuchnick@thomas-and-company.com.

United States Department of Labor’s Unemployment Claims Report – Week Ending September 25, 2021

The Unemployment Insurance Weekly Claims report for the week ending September 25, 2021 has been released by the United States Department of Labor.

Week Ending 9/25 Prior Week
Seasonally adjusted initial claims: 362,000 351,000
4 week moving average: 340,000 335,750
Seasonally adjusted insured unemployment rate: 2.00% 2.10%
Seasonally adjusted insured unemployment number: 2,802,000 2,845,000
4-week moving average: 2,797,250 2,804,000
Number of unadjusted claims: 298,255 306,209
Unadjusted insured unemployment rate: 1.80% 1.80%
Unadjusted number claiming UI benefits: 2,460,965 2,534,759

The full news release report can be downloaded here.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

State & Local Tax Registration Services

As a result of COVID-19, employers are now empowered with a new work environment for employees.  Many employers are now giving their employees the option to work from home.  Also, employers are hiring across the country despite where the corporate headquarters or physical work locations are positioned.  From a Payroll Tax prospective, employers may have to register for new state unemployment, state withholding and local income tax account numbers that are not currently set-up in that state or locality.

Registering for tax accounts can be very time consuming for any Payroll Department, especially if they have never registered in that jurisdiction.  Each state and locality have their own nuances and registration processes.  Employers will need to complete these for the employee that is working from home prior to the first pay date.

One of the most tedious payroll tax registrations to complete are local income tax accounts.  There are over 4,000 taxing jurisdictions across 17 states.  Depending on the state, local income taxes may be levied by county, municipality, school district, etc.

For example, there are over 2,500 municipalities and approximately 400 school districts that impose income or wage taxes in Pennsylvania and over 600 municipalities and approximately 200 school districts in Ohio.

Over the last several months, we have received requests from our clients to assist in these areas and we heard them loud and clear.  As a result, Thomas & Company now offers State & Local Tax Account Registration Services!  We have team members with 20+ years of experience in tax registrations and we would be happy to assist you!

If you are interested in Thomas & Company partnering with your team to provide these additional services, feel free to contact Jeremy Muchnick, our Director of Tax Recovery Services, at jmuchnick@thomas-and-company.com.

 

United States Department of Labor’s Unemployment Claims Report – Week Ending September 18, 2021

The Unemployment Insurance Weekly Claims report for the week ending September 18, 2021 has been released by the United States Department of Labor.

Week Ending 9/18 Prior Week
Seasonally adjusted initial claims: 351,000 332,000
4 week moving average: 335,750 335,750
Seasonally adjusted insured unemployment rate: 2.10% 1.90%
Seasonally adjusted insured unemployment number: 2,845,000 2,665,000
4-week moving average: 2,804,000 2,807,500
Number of unadjusted claims: 306,209 262,619
Unadjusted insured unemployment rate: 1.80% 1.70%
Unadjusted number claiming UI benefits: 2,534,759 2,328,822

The full news release report can be downloaded here.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

 

Virginia’s UI System will be Offline During Transition to New System

UPDATE: The Virginia Employment Commission (VEC) has delayed the rollout of its new unemployment insurance (UI) system a month. The current system will now be down in late October allowing the VEC more time for user testing and training to make sure everything is in order. This was originally planned to begin on September 29, 2021.

The Virginia Employment Commission (VEC) is cutting over to a new, modernized system beginning on Wednesday, September 29 at 12:00 pm EST for VEC online systems and at 6:00 p.m. on Thursday, September 30 for VEC telephone services. This transition will last approximately 5-7 calendar days. This transition period will impact both claimants and employers. Claimants and employers should take any necessary time-sensitive actions prior to the changeover period. If this is not possible, you will need to complete these actions once the changeover period has ended.

VEC will be in a changeover period after the dates mentioned above. The “changeover period” is the period of time in which the current Unemployment Insurance system, including Gov2Go, will be down in preparation for the go-live of the new Virginia Unemployment Insurance system (VUIS).

Employers and third-party administrators like Thomas & Company will not have access to any VEC services other than Appeals during the changeover period. Appeals functions (such as filing an appeal, participating in a scheduled appeal hearing, and registering a telephone number for an upcoming appeal hearing) will continue without interruption.

  • This means that VEC will not be issuing claims during the changeover period so you may see a decrease in activity temporarily in VA. We will not be able to receive or respond to SIDES claims during this time period and will resume normal correspondence with the state once the new system is operational. If you have any claims that have a due date between September 29 and October 6, 2021, please try to provide the information to Thomas & company prior to September 29th to minimize any delays in adjudicating the claims.
  • Thomas & Company will be able to submit evidence, a request for postponement, letter of representation, or withdrawal letter concerned with a pending appeal or hearing before First Level Appeals or Commission Appeals during the transition using all means of correspondence outlined on the Notice of Appeal.
  • During normal operation hours, Thomas & Company will only have access to the staff in the Administrative Law Division to discuss procedural matters concerning a pending appeal case or how to file an appeal.  All other questions concerning a claim (including resumption of payments based on an examiner’s decision) will be directed to the Customer Call Center by T&C once the changeover period has ended.
  • If you have a VA Gov2Go account, you will no longer have access after the cutoff date. The new Virginia Unemployment Insurance System (VUIS) will completely replace Gov2Go and all actions you previously took in Gov2Go will need to take will occur in VUIS.

Claim Activity will also be halted during this transition.  Claimants will not be able to file a new, additional, or reopened claim while the system is offline. Once the new system is online, claimants will be able to request the claim be made effective for the week originally filed while the system was down.

  • Claims in pending status will remain in this status and VEC staff will not have access to claims or benefit information during the transition.
  • Claimants will not be able to upload any documentation or forms during this period. It is suggested to upload any documents prior to the September 29 cut off.
  • Claimants will not be able to file their weekly claims during the transition. In order to avoid a delay in payment, it is suggested that weekly claims for the week ending September 25 be filed between September 26 and September 30 before the changeover period initiates.
  • Claimants will not receive benefit payments during the transition. Individuals who have not yet filed for the week ending September 25 prior to the changeover period will be able to file a weekly claim following the changeover period.
  • The Customer Contact Center will not be able to take any calls during the cutover period.

For more information on the transition, please visit https://www.vec.virginia.gov/node/13530. We will continue to monitor the VEC website for updates and will notify you when normal operations resume.

 

United States Department of Labor’s Unemployment Claims Report – Week Ending September 11, 2021

The Unemployment Insurance Weekly Claims report for the week ending September 11, 2021 has been released by the United States Department of Labor.

Week Ending 9/11 Prior Week
Seasonally adjusted initial claims: 332,000 310,000
4 week moving average: 335,750 339,500
Seasonally adjusted insured unemployment rate: 1.90% 2.00%
Seasonally adjusted insured unemployment number: 2,665,000 2,783,000
4-week moving average: 2,807,500 2,840,250
Number of unadjusted claims: 262,619 284,287
Unadjusted insured unemployment rate: 1.70% 1.90%
Unadjusted number claiming UI benefits: 2,328,822 2,600,083

The full news release report can be downloaded here.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.