THOMAS & COMPANY SUPPORT CENTER – Holiday Hours
On Friday, December 23 our support center will close 2 hours early at 5:00 pm Central in preparation for the holiday. Our offices and Customer Support Center will be closed on Monday, December 26th in observance of the Christmas holiday. Thank you in advance for your understanding.
IRS – 940 Forms for 2022 Have Been Released
Employers are required to pay Federal (FUTA) tax on the wages that are earned by employees if you paid more that $1,500 in any calendar quarter in 2020 or 2021 or if you had at least one employee for some part of a day in any 20 or more different weeks in either 202 or 2021. The IRS released the 2022 Form 940, Employer’s Annual Federal Unemployment Tax Return and Form 940 Schedule A, Multi-State Employer and Credit Reduction Information.
The FUTA credit reduction states for 2022 is reflected on the Form 940, Schedule A. As earlier stated, California, Connecticut, Illinois, and New York will incur a 0.30% FUTA credit reduction for 2022. This brings the effective FUTA rate to 0.90% in these states and equates to an additional cost of $21 per employee that reaches the $7,000 federal unemployment taxable wage base.
ARIZONA – Taxable Wage Base Increase for 2023
The taxable wage base in Arizona is set to rise to $8,000 for 2023. This is an increase of $1,000 from 2022.
COLORADO–Taxable Wage Base Increase for 2023
The taxable wage base in Colorado is set to rise to $20,400 for 2023, this is an increase of $3,400 from 2022.
COLORADO – Employee Notification Required
The Colorado FAMLI (Family and Medical Leave Insurance Program) statute requires employers post a notice in a prominent, visible workspace location that can be accessed by all employees informing employees about the FAMLI program by January 1, 2023. Colorado employers can download the required 2023 poster on the FAMLI website. For more information about the FAMLI program and upcoming CO webinars, please visit the FAMLI Newsletter.
HAWAII – Weekly Benefit Amount and Taxable Wage Base Increase for 2023
Effective January 1, 2023, the maximum weekly benefit amount (WBA) in Hawaii will increase to $763 for unemployment claims. The 2022 WBA was $695. The taxable wage base in Hawaii is set to rise to $56,700 for 2023, this is an increase of $5,100 from 2022.
KENTUCKY– Taxable Wage Base Increase for 2023
The taxable wage base in Kentucky is set to rise to $11,100 for 2023. This is an increase of $300 from 2022.
LOUISIANA– Taxable Wage Base Unchanged for 2023
The taxable wage base in Louisiana is set at $7,700 for 2023. This taxable wage base remains the same as 2022.
MINNESOTA– Taxable Wage Base Increase for 2023
The taxable wage base in Minnesota is set to rise to $40,000 for 2023. This is an increase of $2,000 from 2022.
MONTANA– Taxable Wage Base Increase for 2023
The taxable wage base in Montana is set to rise to $40,500 for 2023. This is an increase of $2,400 from 2022.
NEVADA– Taxable Wage Base Increase for 2023
The taxable wage base in Nevada is set to rise to $40,100 for 2023. This is an increase of $3,500 from 2022.
NORTH CAROLINA– Interest Rates for Unpaid Contributions Set to Rise in 2023
Employers in North Carolina with outstanding monies owed in 2023 will pay interest at a higher rate than in 2022. As of January 1, 2023, the interest rate is set to rise from 5% to 7% through June 30, 2023. The Secretary of Revenue sets the interest rates around June 1 and December 1 of each year.
VIRGINIA– Fund Builder Tax Eliminated in 2023
During the pandemic, employers in the State of Virginia were assessed a fund builder tax of $16 per employee because the trust fund solvency percentage was below 50%. The Virginia Employment Commission announced that the unemployment trust fund has “returned to pre-pandemic levels and has surpassed key solvency levels” and the trust fund solvency percentage is now at 55% so the fund builder tax will be eliminated in 2023.