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T&C Unemployment Insurance News and Updates – August 23, 2023

MICHIGAN – Taxable Wage Base Remains for 2024
The taxable wage base for Michigan will remain the same for 2024. Currently, the wage base is $9,500. As of June 30, Michigan’s trust fund balance was $2.2 billion, just short of qualifying employers for a reduction in the wage base.

TEXAS – System Replacement Paused
Earlier this year, Texas indicated that their new tax system would be rolled out by mid-2023 but, at this time, the Texas Workforce Commission has indicated that their development of a consolidated Texas Unemployment System (TxUS) has been paused. Thomas & Company will continue to monitor this development and communicate any relevant updates to our clients as they become available.

VERMONT – New Withholding Tax
Overriding the governor’s veto, Vermont legislators enacted H.217, which establishes a new payroll tax –Child Care Contribution – that will go into effect on July 1, 2024. This is the first state to mandate withholding for childcare purposes and both the employee and the employer will contribute. The tax will be funded by 0.44% of the employee’s covered wages with the employee contributing 25% (or 0.11%) and the employer contributing the remaining amount.

WASHINGTON – Avoid Tax Rate Penalties
As a reminder, all tax reports must be filed and all UI payments must be paid in full by September 30th to avoid a delinquent tax rate for 2024. Failure to do will result in an increased tax rate and assessment of the maximum share-cost rate.

Darby Gibson

Author Darby Gibson

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