State Unemployment Tax
Important Update FL, KY and NC Revised Rates – MA Rates Issued:
Florida - The state recently passed legislation(HB 15 / SB 50) that will change certain rating factors for the 2021 and 2022 SUI Tax Rates, and it waiting signature form the Governor. Once signed, the state will revise all 2021 SUI Tax Rates shortly after. This should result in sizeable rate reductions for most employers except those that are currently minimum rated(0.29%) and certain maximum rated employers(5.40%).
Kentucky – The state has decided to change the Tax Rate Schedule for 2021 back to Schedule A from the current Schedule E. This will result in rates being reduced for all employers from 1.00% to 0.70%. Rates are currently being issued. The state will also be lowering the 2021 Wage base back down to $10,800(originally was $11,100)
Massachusetts – The state finally issued their tax rates with a mail date of April 6. Due to recent legislation they were able to keep Rate Schedule E for 2021(same as 2020). However, the state did increase the Solvency Assessment, a key factor in the rate calculation, from 0.58% to 9.23%. This will result in a severe decrease to all employers Account Balances and an increase to almost all employers Tax Rates.
North Carolina – The state passed Senate Bill 114, which lowered the employer base contribution rate by 0.50%. This will result in most employers seeing a rate reduction of up to 0.50% for 2021. Employers not impacted are those who are minimum(0.06%, New Employers(1.00%) and certain maximum rated employers(5.76%). Rates are currently being issued.
2021 Tax Rate Update:
As of April 8, all states except Texas(June) have issued their 2021 SUI Tax Rates
Below is a list of important upcoming deadlines:
Penalty Rate Protest Deadlines:
Massachusetts – June 20 // Mississippi – April 11 // North Carolina – May 1
Voluntary Contributions Deadlines:
Massachusetts – May 7 // Minnesota – April 30 // North Dakota – April 30
Joint Account Deadlines:
Hawaii – December 31(retroactive to January 1)
ValeU Group continues to update our All-State Reference Guide To UI Benefits to properly reflect the states that are not charging employers for COVID related benefit charges.