The Ohio Department of Job & Family Services announced that unemployment tax rates are set to increase for 2021.
Effective January 1, 2021, the mutualized contribution tax rate is set to be 0.50% and is added to the experience-rated employers’ unemployment tax rates. The mutualized contribution tax rate, which was not in effect for 2020, will trigger on because unemployment benefits related to the COVID-19 pandemic were charged to the mutualized account instead of the individual employers.
Total unemployment tax rates for experience-rated employers are to range from 0.80% to 7.30% for positive-rated employers and from 7.40% to 9.80% for negative-rated employers. This is an increase from 2020 rates which ranged from 0.30% to 9.40%.
The total unemployment tax rate for delinquent experienced employers for 2021 is to be 12.30%, up from 11.80% in 2020.
The new-employer tax rate is to be 2.70% for 2021, unchanged from 2020. New employers in the construction industry are to be assessed a rate of 5.80% in 2021, also unchanged from 2020.
Ohio’s unemployment taxable wage base will remain at $9,000 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.