State Unemployment Tax
Important Update – 2021 Rates:
Alabama – On February 23 Alabama sent notice to all employers that they updated Tax Rate Notices for certain employers. Employers were told to check the 2021 Tax Rate notices via the state website to determine if they have changed. If you had downloaded a copy of your rate prior to February 23, we encourage you to download the most recent copy and forward a copy to ValeU Group and your payroll provider.
Hawaii - The state is currently issuing their 2021 SUI Tax Rate notices with a mail date of March 11. The state was able to pass legislation to reduce the Tax Rate Schedule from Schedule H(the highest) to Schedule D for 2021.
Maryland - On February 20 the state of Maryland issued their 2021 SUI Tax rates which included Tax Rates for 2021 as a result of an Executive Order that was passed regarding removing the COVID-19 charges. Employers should use the LOWER of the two tax rates that were issued.
New York – UPDATE - The state has made the final determination to keep the "highest" rate schedule for 2021. This will result in an increase of 1.50% to 2.00% for most employers.
The state will be issuing the 2021 Tax Rates in the “second half” of March. This is a month later than usual from years past and will push up against the March 31 Voluntary Contribution and Joint Account deadlines.
Texas – The state announced on February 24 that they will not issue Tax Rates until June 2021 allowing them to review legislation to “assist” employers for 2021. As a result, the state has adjusted the due dates for the 1st and 2nd Quarter SUI payments as follows:
1st Quarter 2021 SUI Payment Due Date – August 2, 2021
2nd Quarter 2021 SUI Payment Due Date – September 30, 2021
The Wage Detail and Returns will still need to be submitted as usual - April 30 for the 1st Quarter and August 2nd for the 2nd Quarter.
In addition, the state will not allow the submission of Voluntary Contributions for the 2021 tax year.
Washington - The state recently passed legislation(SB 5061) removing COVID related benefit charges up to May 30, 2020 from all employers and reduced certain aspects of their Tax Rate Calculation and Schedule. Employers should receive revised rate notices dated February 26 reflecting considerable rate decreases for 2021. Please send any revised rate notices to ValeU Group for review.
2021 Tax Rate Update:
As of March 2, Forty-Four States have issued their 2021 SUI Tax Rates, with five states due to issue their rates by April and Texas as noted above in June.
Below is a list of important upcoming deadlines:
Penalty Rate Protest Deadlines:
Hawaii – March 27(Est) // New York – March 31(Est) // Pennsylvania – March 31
Voluntary Contributions Deadlines:
Arkansas – March 31 // Colorado – March 14 // New York – March 31(Est)
Joint Account Deadlines:
Missouri – March 31 // New York - March 31(Est)
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.