State Unemployment Tax
As the summer comes to a close, the states will begin to release further information concerning their 2021 Taxable Wage Base, Rate Schedules as well as other tax cost changes slated for the upcoming tax year. Certain states have already "locked" in their rate schedules for 2021 in order to limit potential tax rate increases(IN, IA as examples), and we expect other similar actions form other states as the impact of the pandemic is more clearly understood. As more information comes out ValeU Group will continue to update this website with additional information.
2021 Rate Schedules:
The four "Fiscal Year" states have all issued their 2020/2021 Tax Rate Schedules. New Jersey will be keeping the same schedule as last year, with Vermont using a lower Rate Schedule for the upcoming year.
New Hampshire, another Fiscal Year State, will be adding an Emergency Power Surcharge of 0.50% for the 3rd quarter 2020 as well as removing the Fund Balance Reduction of 1.00%. For the 4th quarter the EPS will increase to 1.00%.
Tennessee, the last of the Fiscal States, will be using Rate Schedule 6 for 2020/2021, the same as the previous year.
Indiana will reduce their number of rate schedules and "locked" in Rate Schedule C for 2021 to 2025. The range of assigned tax rates will stay the same as 2020(0.50% to 7.40%),
Iowa will "lock" in their current rate schedule for 2021.
Pennsylvania will keep the same schedule and rate factors as 2020 for 2021.
South Dakota will also be using the same rate schedule for 2021.
COVID-19 Benefit Charge Relief
States continue to address the issue of charging employers due to the COVID-19 pandemic and resulting economic shutdown. Currently all but 8 states have agreed to Benefit Charge relief for employers that were impacted by the pandemic. Please refer to the ValeU Group AllState Chart for further information.
Lost Wages Assistance Program
With the expiration of the $600 per week Federal Pandemic Unemployment Compensation (“FPUC”) payment, the Federal Government has enacted the Lost Wages Assistance Program which will be funded by FEMA and distributed by the individual states. The states must apply for assistance from FEMA to receive the funds, and currently 40 states have applied and been granted access to the funds. As of September 3, 2020, 40 states have been approved for participation in the program. Below is a list of the states along with D.C that have yet to be approved for participation in the program.
D.C. Delaware, Illinois, Kansas, Nebraska, Nevada, New Jersey, North Dakota, South Carolina, and Wisconsin
South Dakota will not be participating in the program.
States may also contribute an additional $100 from their own funds, and currently only Kentucky and Montana have confirmed they will provide the additional payment .
Below is a link to the FEMA website: