CALIFORNIA – Changes to Disability Withholding
Effective January 1, 2024, California has passed a bill (SB 951) to remove the State Disability Insurance taxable wage limit and maximum withholding. The rate for 2024 is 1.1%, up from 0.9% in 2023.
CONNECTICUT – Severance Impact on Unemployment
In an effort to help improve Fund solvency HB 6633 was passed in 2021. Among the numerous changes scheduled to go into effect on January 1, 2024 as a result of the bill’s passage is a key change that will impact how severance pay is treated for unemployment purposes. Currently, severance pay does not result in a temporary disqualification for claimants if the severance is part of a separation agreement. But, according to the bill, a claimant will now be ineligible for benefits “during any week with respect to which the individual has received or is about to receive remuneration…including severance or separation payment by an employer.” There is still a question, however, as to how the disqualification will be allocated. Thomas & Company will continue to monitor how the Connecticut Department of Labor interprets the bill.
ILLINOIS – Tax Rates Remain the Same, Taxable Wage Base Increases
The Illinois Department of Employment Security has announced tax rate information for 2024. Rates will remain unchanged from 2023, ranging from 0.850% to 8.650%. New employers will continue to pay 3.950%. The taxable wage base will increase to $13,590, up 2.40% from $13,271 in 2023.
OREGON – Taxable Wage Base Increases
The taxable wage base in Oregon will increase to $52,800 in 2024, up 3.73% from $50,900 in 2023.
