Category

Regional

Indiana Unemployment Tax Rates Hold Steady for 2021

The Indiana Department of Workforce Development has stated that the range of unemployment tax rates for 2021 will remain unchanged from 2020.

Effective January 1, 2021, unemployment tax rates are to range from 0.50% to 3.80% for positive-rated employers and from 4.90% to 7.40% for negative-rated employers. A solvency surcharge is not to be in effect for 2021.

The new employer unemployment tax rate will remain at 2.50% in 2021, unchanged from 2020.

The tax rate for new construction employers also is to be 2.50%, down from 2.53% for 2020.

Indiana’s unemployment taxable wage base is to be $9,500 for 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.

Montana Unemployment Tax Rates Hold Steady for 2021

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

Effective January 1, 2021, unemployment tax rates for experience-rated employers are to be determined with Schedule 1, with tax rate ranging from 0.13% to 1.60% for positive-rated employers and from 3.10% to 6.30% for negative-rated employers. These rates include the Administrative Fund Tax attributable to all employers; 0.13% for positive-rated employers and 0.18% for negative-rated employers.

Montana’s unemployment taxable wage base is to be $35,300 in 2021, up from $34,100 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.

Arizona Unemployment Tax Rates Set to Rise in 2021

The Arizona Department of Economic Security announced that employers should expect unemployment tax rates to be higher in 2021 than in 2020.

Effective January 1, 2021, unemployment tax rates will range from 0.08% to 10.30% for positive-rated employers and from 10.87% to 20.60% for negative-rated employers. In comparison, tax rates in 2020 ranged from 0.05% to 6.42% for positive-rated employers and from 6.78% to 12.85% for negative-rated employers.

The tax rate for new employers is 2.00% for 2021, unchanged from 2020.

Arizona’s unemployment taxable wage base is $7,000 for 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’s 2021 Minimum Wage Requirement

The state of Missouri advises that their minimum wage rate will be $10.30 per hour effective January 1, 2021.

Pursuant to Proposition B, which was approved by Missouri on November 6, 2018, the minimum wage will increase 85 cents per hour each year through 2023. Missouri requires all private businesses to pay, at a minimum, the $10.30 hourly rate. Retail and service businesses whose gross annual sales are less than $500,000 are the exception to this requirement. Compensation for tipped associates, however, must total at least $10.30 per hour. Employers are required to pay tipped associates at least 50 percent of the minimum wage, plus any amount necessary to bring an associate’s total compensation to a minimum of $10.30 per hour. Missouri’s minimum wage law does not apply to public employers, nor does it allow the state’s minimum wage to be lower than the federal minimum wage rate.

For more information about the minimum wage requirements and for downloadable a copy of the updated poster, visit labor.mo.gov/DLS/MinimumWage. A printable version of the poster, along with other required posters for businesses, can be found at labor.mo.gov/posters.

Washington Unemployment Tax Rates Set to Rise in 2021

Washington’s unemployment tax rates for experience-rated employers are set to rise in 2021, though legislative action later may provide tax relief.

Effective January 1, 2021, unemployment tax rates for experience-rated employers are to range from 0.52% to 6.02%, compared with 0.13% to 5.72% in 2020. The rates include social cost tax rates ranging from 0.49% to 1.46% and an employment administration fund (EAF) tax rate of 0.03%.

New employers are to be assessed an unemployment tax rate generally equal to 115%, up from 90% in 2020, of the applicable average unemployment tax rate for employers in their industry category.

A solvency surcharge is not to be in effect for 2021, as the surcharge was waived under a proclamation (20-81) signed December 17, 2021 by Governor Jay Inslee.

Washington’s unemployment taxable wage base is to be $56,500 in 2021, up from $52,700 in 2020.

Unemployment tax rates may be lowered under measures proposed by Governor Inslee. Under the proposed relief measures, employers would be relieved of charges for unemployment benefits paid from March 22, 2020 to May 2, 2020.

Additionally, the flat social cost tax rate would decrease to 0.50% from 1.22% for 2021, then gradually increase annually to 0.90% in 2025. The solvency tax would be suspended from 2021 to 2025.

The measures would cause the average unemployment tax rate to be 1.17% for 2021. The average unemployment tax rate otherwise is projected to be 1.88% for 2021, up from 1.03% 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.

Maryland Unemployment Tax Rates Set to Rise in 2021

The Maryland Department of Labor, Licensing & Regulation announced today that unemployment tax rates for 2021 are to be determined with the state’s highest unemployment tax rate table.

However, unemployment benefits paid during fiscal 2020 are not to be included in the calculation of an employer’s tax rate, under an executive order (20-12-10-01) signed December 10, 2020 by Governor Larry Hogan.

Unemployment tax rates are to be determined with Table F for 2021 because of the impact of COVID-19 on the state unemployment trust fund. Tax rates for 2020 were determined with Table A, which has the lowest range of rates out of the state’s six unemployment tax tables.

Under the executive order, individual employer tax rates for 2021 are to be based on unemployment benefits charged from July 1, 2016, to June 30, 2019, instead of those charged from July 1, 2017, to June 30, 2020. This is to allow employers to maintain the same benefit ratio for 2021 as in 2020 and prevent unemployment benefits charged during the pandemic from further increasing 2021 tax rates.

As an example, an employer with a benefit ratio between .0163 and .0189 in Table A had a rate of 2.10%, whereas in Table F, the rate for that same benefit ratio will be 4.90%.

For 2021, tax rates for experienced employers are to range from 2.20% to 13.50%, compared with 0.30% to 7.50% in 2020. The tax rate for new non-construction employers is to be 2.60%, unchanged from 2020.

Maryland’s 2021 unemployment taxable wage base will also remain at $8,500 for 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.

Florida Unemployment Tax Rates Set to Rise in 2021

The Florida Department of Revenue announced that unemployment tax rates are set to increase for 2021.

Effective January 1, 2021, unemployment tax rates are to range from 0.29% to 5.40%. Unemployment tax rates for 2020 ranged from 0.10% to 5.40%.

The tax rate for new employers is to be 2.70% in 2021, unchanged from 2020.

Florida’s unemployment taxable wage base is to be $7,000 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.

District of Columbia Unemployment Tax Rates Set to Rise in 2021

The District of Columbia Department of Employment Services announced that unemployment tax rates are set to increase for 2021.

Effective January 1, 2021, unemployment tax rates for experience-rated employers are to be determined with Table 6, causing rates to range from 1.90% to 4.40% for positive-rated employers and from 6.20% to 7.40% for negative-rated employers.

Tax rates for 2020 were determined with Table 5, which generally has lower tax rates than Table 6.

The tax rate for new employers is to be 2.7o% in 2021, unchanged from 2020.

Employers also are required for 2021, as for 2020, to pay an administrative funding assessment of 0.20%.

The unemployment taxable wage base is to be $9,000 for 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.

Louisiana Unemployment Tax Rates Hold Steady for 2021

The Louisiana Workforce Commission announced that unemployment tax rates are not to change for 2021.

Effective January 1, 2021, as in 2020, tax rates for experienced employers are to range from 0.09% to 6.20%.

For 2021, tax rates for new employers are to range from 1.16% to 2.89%.

Louisiana’s unemployment-taxable wage base is to be $7,700 in 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.

Hawaii Unemployment Tax Rates Set to Rise in 2021

The Hawaii Department of Industrial Relations announced that unemployment tax rates are set to increase for 2021.

Hawaii’s unemployment tax rates for 2021 are to be determined with the state’s highest unemployment tax rate schedule, Schedule H. Tax rates for experienced employers are to range from 2.40% to 5.20% for positive-rated employers and from 5.40% to 6.60% for negative-rated employers.

In 2020, Schedule C, which has the third-lowest range of rates out of the state’s eight unemployment tax rate schedules, was in effect. Rates under Schedule C range from 0.00% to 2.40% for positive-rated employers and from 2.80% to 5.60% for negative-rated employers.

Employers also are to be assessed an employment and training assessment of 0.01%, unchanged from 2020.

The tax rate for new employers is to be 5.20% in 2021, up from 2.40% in 2020.

The Department has indicated that it expects legislative action to implement a lower rate schedule for 2021 but this has not yet occurred.

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