Currently 41 states have issued their 2023 Tax Rates. Below are highlights of recent states that have issued tax rates with significant changes to their calculations from 2022.
Alabama – Issued 2023 Tax Rates on December 13. Rate schedule “A” is in effect for 2023, with a minimum rate of 0.20% and a maximum rate of 5.40%. Employers could see a reduction of between 0.50% to 0.90% for 2023.
Kentucky – Issued 2023 Tax Rates on December 15. The state has changed their rate calculation to a “One Fiscal Year Calculation” from a “Three Fiscal Years Calculation". All Positive Rated employers should see a considerable reduction in Tax Rates as a result of this change.
Massachusetts – Issued 2023 Tax Rates on December 29. The state drastically increased the COVID assessment rate (12.50% to 126.40% of UI Rate) in 2023, but to offset that, they moved to the lowest rate schedule. Employers should still see an increase ranging from 0.21% (Minimum Rated) to 3.35% (Max).
Virginia – Issued 2023 Tax Rates on December 9. The state has removed the Fund Building Charge of 0.20% from the 2023 rate, resulting in a minimum rate of 0.13% with a maximum rate of 6.23%.
2023 Taxable Wage Base Update
47 states have confirmed the 2023 Taxable Wage Base for employers. Only DE, TN, WV along with PR and the VI have yet to confirm wage bases.
If you have not done so already, please forward copies of your 3rd Quarter 2022 SUI Reports as well as any 2023 Tax Rate notices you have received.
Voluntary Contribution Deadlines:
Georgia – February 2 / Indiana – February 1 / Kentucky – January 4
Louisiana – January 30 / Massachusetts – February 3 / Michigan – January 28
Missouri – January 17/ Nebraska – January 4 / Pennsylvania – January 30
Washington – February 15 / West Virginia – February 22
Joint Account Deadlines:
West Virginia – February 22
Rate Protest Deadlines:
Alabama – January 12 / Arkansas – January 16 / California – February 28 / Florida – January 11 Indiana – January 17 / Kentucky – January 4 Louisiana – January 27 / Michigan – February 1 Missouri – January 4 / Nebraska – January 4 / Washington – January 9
West Virginia – February 22
FUTA UPDATE
California, Connecticut, Illinois, and New York have failed to pay back their FUTA Title XII Loans. As a result, employers will now have to pay an additional 0.30% on employees reported in these states retroactively to January 1, 2022.
1. Deadline: Employers will have until January 31, 2023 to pay the additional 0.30% on employees in these four states.
2. The Additional 0.30% will result in an estimated increase of $21 per employee for 2022 (0.30% * $7,000 FUTA Wage Base).
Total FUTA Rate is now 0.90% in these states for 2022. Virgin Islands is 4.20%