The New York Department of Labor 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 2.10% to 9.90% for experience-rated employers. Rates includes basic tax rates ranging from 1.50% to 8.90%, a subsidiary tax with rates ranging from 0.525% to 0.925%, and a reemployment service fund contribution rate of 0.075%. In comparison, tax rates in 2020 ranged from 0.60% to 7.90% for experience-rated employers.
The total tax rate for new employers is 4.10% for 2021, up from 3.20% in 2020.
Tax rates are determined with the schedule in effect when the size-of-fund index is less than zero.
New York’s unemployment taxable wage base is $11,800 for 2021, up from $11,600 in 2020.
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