ALASKA – 2025 TAX RATES AND TAXABLE WAGE BASE ASSIGNED
Unemployment tax rates for experienced rated Alaska employers will range from 1.00% to 5.40% in 2025. The 2025 Employee Rate will be 0.50%.
The taxable wage base will increase to $51,700, up 4.02% from $49,700 in 2024.
ALASKA – NEW ONLINE IDENTITY VERIFICATION OPTION IMPLEMENTED
Beginning December 16, the Alaska Department of Labor and Workforce Development (DOLWD) has new ID verification options available 24/7 for those filing unemployment claims. Instructions will be provided at the beginning of the online application, at which time individuals can choose to verify their identity online through login.gov, in person at a USPS location, or via telephone during UI Claim Center call hours.
The goal of the new online identification process is to improve the filing experience while preventing fraud and misuse of the UI program.
COLORADO – INADEQUATE RESPONSE DETERMINATIONS
Providing a complete and thorough response to unemployment documents is always a best practice to ensure the best possible outcome to an unemployment case. For the past year, Colorado has been issuing a determination on fact-finding questionnaires, additional separation and wage information requests and more based on the adequacy of the information provided. An adequate response means that “the information provided by the employer is sufficient to support a determination on the issue (RCES 7.4.2.2).”
Employers have the option to not protest a claim or not provide additional information about the separation, however, this will be considered an inadequate response by the state, and they will issue a determination based on the available facts.
Colorado can charge an employer’s account for the improper payment of benefits if:
- The payment was made because the employer was at fault for failing to respond on time or adequately to the Division request.
- The employer has established a pattern of failing to respond timely or adequately to Division requests. Colorado defines a pattern as 3 or more inadequate responses or 3% or more of total responses in the prior year, whichever is greater.
Thomas & Company recommends providing the details of the separation in full, even if you do not wish to contest the claim to protect your account from additional charges.
IDAHO – 2025 TAX RATES AND TAXABLE WAGE BASE ASSIGNED
Unemployment tax rates for Idaho employers will range from 0.225% to 5.400% in 2025. While the highest tax rate (5.400%) remains the same, most other rates have decreased from 2024. The standard rate, or new employer rate, will remain at 1.00% for 2025.
The taxable wage base will increase to $55,300, up 3.4% from $53,500 in 2024.
ILLINOIS – 2025 TAX RATES AND TAXABLE WAGE BASE ASSIGNED
2025 Illinois tax rates have been issued ranging from 0.75% to 7.85%, as compared to 2024 rates ranging from 0.85% to 8.65%. This is largely due to a decrease in the State Experience Factor from 126% in 2024 to 114% in 2025. The Benefit Charge Conversion rate and Fund Building Rate remained constant year over year.
The taxable wage base increases from $13,590 in 2024 to $13,916 in 2025 (a 2.4% year over year increase).
Voluntary contributions are not allowed in the State of Illinois.
LOUSIANA – 2025 TAX RATES AND TAXABLE WAGE BASE ASSIGNED
The state has issued 2025 tax rates ranging from 0.09% to 6.20%, the same range as 2024 tax rates. While the range of rates remains consistent compared to last year, the rates assigned to the rate brackets have shifted favorably for employers, creating an average 1.91% per employee tax decrease year over year.
The 2025 taxable wage base remains the same at $7,700 per employee.
Voluntary contributions are allowed.
MICHIGAN – TAXABLE WAGE BASE FOR 2025 DECREASES
Michigan announced that the taxable wage base will be set at $9,000 for 2025. This is a $500 decrease over the previous taxable wage base of $9,500 which has been in place since 2021. However, to qualify for the reduction in the wage base, an employer must have completed and submitted all required quarterly tax reports and cannot be considered delinquent, which means they have an unpaid balance of $25 or more in tax, penalty or interest.
In February, delinquent employers will be sent Form 6354, Notice of $9500 Taxable Wage Base to remind them to file any missing report and/or pay an outstanding balance. Delinquent employers have 14 days to fix outstanding issues with their account to qualify for the reduction.
MICHIGAN – CHANGES TO WEEKLY BENEFIT AMOUNTS AND DURATIONS EXPECTED
Michigan Governor Gretchen Whitmer is expected to sign a package of bills that would impact the duration of benefits and the weekly benefit amounts.
House Bill 40 will lengthen the duration that an individual can collect benefits from the current 20 weeks to 26 weeks. In addition, the weekly benefit amount will increase from $362, plus $6 for each dependent to $614 per week (plus $26 per dependent) incrementally over the next 3 years.
- Beginning on Jan. 1, 2025: Maximum weekly benefit becomes $446 plus $12.66 for each dependent.
- Beginning on Jan. 1, 2026: Maximum weekly benefit becomes $530 plus $19.33 for each dependent.
- Beginning on Jan. 1, 2027: Maximum weekly benefit becomes $614 plus $26 for each dependent.
Beginning on Dec. 31, 2027, the State Treasurer would increase the maximum weekly benefit rate and the unemployment benefit rate for each dependent by the Consumer Price Index (CPI) annually.
Senate Bill 975 would amend the Michigan Employment Security Act to allow a victim of domestic violence who left their work voluntarily because of the domestic violence to still be eligible for unemployment benefits. The bill also would make employees who voluntarily reduce their work to below full-time levels considered to have left work without good cause.
Senate Bill 962 specifies that a claimant is actively seeking work by completing qualifying activities at least three times a week. It would also change the number of hardship waiver applications that the Unemployment Insurance Agency (UIA) can consider when waiving recovery of improperly paid benefits.
MINNESOTA – 2025 TAX RATES AND TAXABLE WAGE BASES RELEASED
The state has issued the rate factors for 2025 tax rates. Rates will range from 0.40% to 9.30% (including a Base Rate of 0.40%), as compared to 2024 rates ranging from 0.10% to 9.0% (which included a base rate of 0.10%). New employer rates are assigned based on industry. For 2025, an additional assessment totaling 5.00% of the calculated state unemployment taxes due will be required to pay additional funds to replenish the state UI trust fund.
The taxable wage base will increase from $42,000 in 2024 to $43,000 in 2025 (a 2.4% year over year increase).
The year-over-year tax impact of the increase in Base Rate, Taxable Wage Base, and the additional assessment is estimated to increase per employee SUI tax by an average 26% across the entire range of rates.
Voluntary contributions are allowed. The deadline for making a VC is 3/31/2025.
NEBRASKA – 2025 TAX RATES AND TAXABLE WAGE BASES RELEASED
Nebraska has issued the rate tables for the calendar year 2025 rates and for positive balanced employers, rates will range from 0.00% to 1.90% as compared to 2024 rates ranging from 0.00% to 1.03%. The year-over-year increase in tax brackets will create an estimated 86% tax increase per employee. Positive balanced employers will use a taxable wage base of $9,000, the same as in years past. Negative balanced employers will be taxed at a rate of 5.4% on a taxable wage base of $24,000 (same as 2024).New non-construction employers will be taxed at a rate of 1.25% while new construction employers will be taxed at 5.4%.
NORTH CAROLINA – DISASTER UNEMPLOYMENT BENEFITS APPLICATION DEADLINE EXTENDED
North Carolina applied for an extension to be able to continue providing temporary financial support for people affected by Hurricane Helene. Individuals in the 39 impacted counties and Eastern Band of Cherokee Indians of North Carolina now have until January 7th, 2025, to apply for DUA benefits.
Disaster Unemployment Assistance benefits are available for residents of the following counties: Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Cabarrus, Caldwell, Catawba, Cherokee, Clay, Cleveland, Forsyth, Gaston, Graham, Haywood, Henderson, Iredell, Jackson, Lee, Lincoln, Macon, Madison, McDowell, Mecklenburg, Mitchell, Nash, Polk, Rowan, Rutherford, Stanly, Surry, Swain, Transylvania, Union, Watauga, Wilkes, Yadkin, and Yancey counties as well as the Eastern Band of Cherokee Indians of North Carolina.
DUA is a federal unemployment program that provides temporary payments for people who, as a direct result of Hurricane Helene:
- No longer have the job that provided their primary source of income.
- Are unable to reach their place of unemployment.
- Cannot work because of an injury caused by the storm.
- Were unable to begin employment or self-employment due to the storm.
- Have become the major supplier of household income due to a storm-related death of the previous major supplier of household income.
To apply, individuals must first apply for regular state unemployment benefits. If they are determined to be ineligible for or have exhausted their regular benefits, then they may be eligible for a DUA claim. Individuals will need the following to file for unemployment:
- Name and address of all employers they worked with within the last 24 months.
- County of residence.
- County of employment.
- Mailing address and ZIP code.
- Valid telephone number.
- Their Social Security number or Alien Registration number.
- Have proof of employment and income if they are self-employed, a farmer, or a commercial fisher.
To get DUA benefits, all required documentation must be submitted within 21 days from the day the DUA application is filed. People who file DUA claims also have an option to permit the N.C. Department of Revenue to give the Division of Employment Security their 2023 tax return if they cannot access their documents due to Hurricane Helene.
If they need help, call the dedicated DUA Hotline at 919-629-3857 between 8 a.m. to 5 p.m. to apply for DUA benefits. For more information, go to: des.nc.gov/dua.
