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T&C Unemployment Insurance News And Updates – December 13, 2023

CALIFORNIA – EDD Transitions Benefit Bank Partners

The California Employment Development Department (EDD) recently announced the transition of banks for approximately 850,0000 Californians who currently have an active benefit claim. The EDD is transitioning from Bank of America to Money Network, part of Fiserv. The mailing of letters with additional information on the transition has already begun and claimants should receive this information shortly. Then, beginning late January 2024, new Money Network prepaid debit cards will be mailed to all those actively claiming benefits. Important dates will be communicated to relevant claimants, including April 15, 2024, which will be the final day the Bank of America cards are active. Direct deposit options through Money Network will be available starting in the spring. Additional information about EDD debit cards can be found on their website.

MINNESOTA – Tax Rates Remain the Same, Taxable Wage Base Increases

Minnesota has announced tax rate and wage base information for 2024. Rates will remain unchanged from 2023, ranging from 0.1% to 9.0%, including the base tax rate. No additional or special assessments will be leveraged during the year. New employers will continue to pay rates assigned by industry, ranging from 1% to 8.9%. The taxable wage base will increase to $42,000, up 5% from $40,000 in 2023.

NEBRASKA – Tax Rate Increases, Taxable Wage Base Remains the Same

Almost all tax rate categories in Nebraska will increase for the 2024 calendar year. Categories 2 through 19 will see rate increases and will range from 0.12% to 1.03%. The average tax cost increase per employee earning $9,000 for these rate categories will be approximately 42%.

Meanwhile, rates for categories 1 and 20 will remain the same at 0.00% and 5.40%, respectively. While rate categories are assigned via Nebraska’s array system, an employer must be negative rated in order to be assigned to category 20. New employer rates will remain at 5.40% for construction industry employers and 1.25% for all other employers.

The taxable wage base(s) will also remain the same – $9,000 for employers whose tax rates fall in categories 1-19 and $24,000 for employers in category 20.

WASHINGTON – Paid Leave Collective Bargaining Agreement Provision Expiration

Beginning January 1, 2024, individuals under collective bargaining agreements, who were previously excluded from Paid Leave will become eligible for the program. If you have employees who fall into this category, you will need to begin collecting premiums and submitting them on applicable Paid Leave reports. For more information, visit Washington’s dedicated Paid Leave site.

WASHINGTON – Tax Reporting Changes

Beginning with 4Q23 reporting, employers filing their UI tax reports will soon have an option to include either job titles or Standard Occupational Classification (SOC) codes for each employee. Subsequently, beginning with 1Q24, the state will assess a penalty if an employer knowingly fails to report to job title/SOC code on their filings.

Darby Gibson

Author Darby Gibson

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