Category

Regional

Alaska’s New Minimum Wage

The Alaska minimum wage will increase from $10.19 to $10.32 effective January 1, 2021. This minimum wage applies to all hours worked in a pay period, regardless of how the employee is paid (by time, piece, commission, etcetera). All actual hours worked in a pay period, multiplied by the Alaska minimum wage, is the minimum an employee can be compensated by an employer.

Please be aware that tips do not count toward the minimum wage, public school bus driver wages must be no less than twice the current Alaska minimum wage, and that certain exempt employees must be paid on a salary basis of not less than twice the current Alaska minimum wage based on a 40-hour work week in order to maintain their exempt status.

Visit Alaska’s website for more information about Alaska’s wage laws:

http://labor.alaska.gov/lss/whhome.htm.

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.

Iowa Unemployment Tax Rates Hold Steady for 2021

Sources from the Iowa Workforce Development Department indicate that unemployment tax rates for 2021 will remain unchanged.

Effective for 2021, unchanged from 2020, total tax rates for experience-rated employers will range from 0.00% to 7.50%.

Additionally, the total tax rate for new non-construction employers is to be 1.00% and the total tax rate for new construction employers is to be 7.50%.

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

New Jersey Unemployment & Temporary Disability Taxable Wage Bases to Increase in 2021

Effective Jan. 1, 2021, New Jersey’s unemployment taxable wage base will increase to $36,200, up from $35,300 for 2020.

New Jersey’s temporary disability insurance wage base is also set to increase to $138,200 for 2021. In addition to being used for computing temporary disability insurance tax, New Jersey’s temporary disability insurance wage base is used to compute the family-leave insurance tax for 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.

Tennessee Unemployment Tax Rates Hold Steady for 2020/2021

In a phone call today, sources from the Tennessee Department of Labor & Workforce Development indicated that unemployment tax rates for the one-year period from July 1, 2020 to June 30, 2021 will remain at Premium Table 6.

Tax rates in Tennessee have been at Premium Table 6 since July 1, 2015. This is the lowest table in the Department’s statutes.

Effective July 1, 2020, Tennessee’s experienced-employer unemployment tax rates will range from 0.01 percent to 10.0 percent. The new-employer tax rate will also remain unchanged at 2.70%.

Tennessee is one of four states that generally determines unemployment tax rates on a fiscal-year basis.

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

South Dakota Unemployment Tax Rates Hold Steady for 2021

The South Dakota Department of Labor & Regulation has confirmed that unemployment tax rates for calendar year 2021 will remain unchanged from the prior year.

Effective January 1, 2021, South Dakota’s experienced-employer unemployment tax rates are to be determined with Schedule B and are to range from 0.00% to 9.30%. Furthermore, employers will also be assessed an investment fee ranging from 0.00% to 0.53%.

The general unemployment tax rate for new employers is to remain at either 1.00% or 1.20% for non-construction employers and 3.00% or 6.00% for construction employer.
Additionally, South Dakota’s unemployment taxable wage base will remain at $15,000 for 2021.

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

Colorado Unemployment Taxable Wage Base to Gradually Increase Until 2026

The Colorado Department of Labor & Employment announced that the unemployment taxable wage base is set to more than double by 2026 under legislation that also expanded the state shared-work program and unemployment benefit eligibility.

Under Senate Bill 207, signed into law by Governor Jared Polis on July 14th, the wage base is to remain at $13,600 in 2021, unchanged from 2020. Then, the wage base is then set to rise to $17,000 for 2022; $20,400 for 2023; 23,800 for 2024; and $27,200 for 2025. Effective Jan. 1, 2026, the wage base is to be $30,600 and will then be annually adjusted moving forward driven by the percentage change in the state’s average weekly wage.

Employers are not to be assessed a solvency surcharge for 2021 or 2022, regardless of the balance of the unemployment trust fund.

Among the measure’s other provisions, which took effect July 14, 2020:

  • Negative-rated employers are no longer ineligible to participate in the state’s shared-work program.
  • The amount of time within which an employer must respond to separation information requests was reduced to seven days from 12 days.
  • Workers are entitled to unemployment benefits when they separate from work because an employer is noncompliant government guidelines concerning disease prevention, to care for a quarantined or ill family member, or to care for a child enrolled in a school that closed because of a public health emergency.
  • Effective until Sept. 1, 2022, the amount of wages a worker may earn before unemployment benefits are reduced is increased. Wages exceeding 50% of a worker’s weekly benefit amount, up from 25%, are deducted from the weekly benefit.

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

Iowa Unemployment Taxable Wage Base to Rise in 2021

The Iowa Department of Workforce Development announced today that the unemployment taxable wage base is set to rise to $32,400 in 2021, up from $31,600 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.

New Hampshire Unemployment Tax Rates to Rise for the Third Quarter of 2020

The New Hampshire Employment Security Department announced on July 17th that unemployment tax rates will increase for the third quarter of 2020.

The balance of the state unemployment insurance trust fund fell to less than $250 million for the second quarter, triggering a rise in tax rates, the Department said on its website.

Tax rates for the third quarter range from 0.10% to 2.70% for positive-rated employers and from 4.30% to 8.50% for negative-rated employers. For the second quarter, rates ranged from 0.10% to 1.70% for positive-rated employers and from 3.30% to 7.50% for negative-rated employers.

The tax rate for new employers is 2.70%, up from 1.70%.

Tax rates for positive-rated employers and new employers included a solvency-threshold tax rate reduction of 1.00% for the second quarter but this has now triggered off. A surcharge of 1.50%, which was in effect for the second quarter at 0.50%, is included in tax rates for negative-rated employers.

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