ALABAMA – Hearing Witness Registration Procedure Change
Thomas & Company has been made aware of a change to Alabama hearing witness attendee procedures. Previously, hearing attendees were responsible for calling in to the hearing at the scheduled date and time. However, the change now requires employers to register with the state the day before the hearing. The state will then call the registered number(s) at the hearing date and time.
CALIFORNIA – State Disability Rate Elective Coverage Rate Increase
The elective coverage rate for State Disability Insurance will increase in 2024 to 9.78%. This is up from 6.93% in 2023.
IDAHO–Taxable Wage Base Increase
The taxable wage base in Idaho will increase in 2024 to $53,500, up 7.2% from $49,900 in 2023.
KANSAS – Tax Rates Decrease, Taxable Wage Base Remains the Same
Tax rates for Kansas employers will decrease slightly in 2024 over 2023. Positive balanced employers will be assigned rates ranging from 0.16% to 4.26% For employers with a negative balance in their reserve accounts, rates will be assigned ranging from 4.42% to 6.00%. New employers will pay their contributions at 2.7%. Newly rated construction employers will pay at 6.0% and newly rates government employers pay at 0.10%.
The taxable wage base in Kansas will remain at $14,000 for 2024.
KENTUCKY – Tax Rates Announced, Taxable Wage Base Increase
Tax rates for Kentucky employers will continue to be determined by Schedule A. Rates under this schedule range from 0.30% to 9.00%. The Service Capacity Upgrade Fund (SCUF) will continue to be in effect for 2024. However, there will be no increase or decrease in the total amount of tax paid by employers as contribution rates are reduced by the same amount (0.075%) as they are increased by SCUF.
The taxable wage base in Kentucky will increase to $11,400, up 2.7% from $11,100 in 2023.
MARYLAND– Withholding Website Updates
Maryland is in the process of updating the website used to register, file, and pay business withholding taxes. The new system will be active on February 6, 2024, and can be found at www.marylandtaxes.gov. Employers should not need to take any action to register on the new site as all accounts from the previous system will be transferred over. While in transition from the previous site, the state will accept paper registrations for a limited time.
MONTANA – Tax Rate Calculation Stays the Same
Tax rates for Montana employers will continue to be determined by Schedule 1. Rates under this schedule range from 0.00% to 6.12%. All employers pay an Administrative Fund Tax (AFT) which funds some of the programs of the Montana Department of Labor and Industry. The AFT rate is 0.18% except for employers in the Eligible Rate Classes who are assigned a 0% UI tax rate. Those employers pay a lower AFT rate of 0.13%.
SOUTH DAKOTA – Tax Rates Decrease, Taxable Wage Base Unchanged
Tax rates for South Dakota employers will decrease in 2024 as the state determines 2024 UI rates based on Schedule C. Rates under this schedule range from 0.00% to 0.30% for positive balanced employers and 0.8% to 8.8% for negative balanced employers. Experience rated employers are also assessed investment fees ranging from 0.00% to 0.53%. If the employer has a reserve ratio of less than 2.25%, those employers are assessed and additional administrative fee of 0.02%. For newly rated employers, the tax rate is 1.2% for the first year and 1.00% for the second and third years for non-construction employers. Newly rated construction employers will be taxed at 6% for the first year and 3% for the second and third years. All new employers are subject to an additional 0.55% investment fee but do not have to pay the administrative fee.
The taxable wage base in South Dakota will remain at $15,000.
TEXAS– Tax Rates Increase, Taxable Wage Base Unchanged
Tax rates for Texas employers will increase in 2024 as the state determines 2024 UI rates based on the sum of 5 components. Overall, the rates will range from 0.25% to 6.25%. New employers in Texas will pay at the predetermined tax rate set by the employer’s NAICS industry average or 2.7%, whichever is higher.
The taxable wage base in Texas will remain at $9,000.
