State Unemployment Tax
Important Information: The state of Colorado issued their 2021 SUI Tax Rates and included COVID-19 related charges(which they agreed to waive previously). The state is aware of the issue and has informed employers they are working on revising all tax rates impacted by this issue before the 1st Quarter 2021 filing date. There is no need to protest the 2021 Tax Rates for any Covid-19 charges at this time. ValeU Group will monitor the situation and update clients accordingly.
2021 Rate Schedules:
As of December 1st, almost 20 States have issued their 2021 SUI Tax Rates, with an estimated 25 additional states expected to release their rates by the end of the year.
California: The 2021 Rate Schedule will remain unchanged from 2020.
Colorado: Tax Rate Schedule increased for 2021, with the Minimum Tax Rates increasing from 0.58% to 0.71%, and Maximum Tax Rates from 7.40% to 9.64%
Florida: The Minimum Tax Rate will increase from 0.10% to 0.29% for 2021. Most employers should see increases ranging from 0.19% to 0.50% due to the increases in the various state Adjustment Factors. The Maximum Tax Rate remains 5.40% for 2021.
Illinois: The state has increased the Experience Factor for 2021 as well as increased the Fund Building Rate by 0.05%. Most employers should see an increase in tax rates on average 0.40%
Kansas: Tax Rate Schedule increased for 2021, with the Minimum Tax Rate increasing from 0.00% to 0.20%, and Maximum Tax Rates from 7.10% to 7.60%
Kentucky: Tax Rate Schedule increased for 2021, with the Minimum Tax Rate increasing from 0.30% to 1.00%, and Maximum Tax Rates from 9.00% to 10.00
Ohio: The 2021 Rate Schedule includes a 0.50% Mutualized Rate for all employers.
Oklahoma: The 2021 Tax Rate Schedule increased form the previous year, with increases ranging from 0.20% to 2.00%.
Oregon: Will use Table IV for 2021, resulting in an increase to the minimum tax rate from 0.70% to 1.20%. The Maximum Tax Rate remains 5.40%.
South Carolina: Tax Rate Schedule was "frozen" for each tax class in 2021 remaining at the same levels as 2020(although the benefit ratios were changed).
Utah: Increased Tax Rates 0.10% for 2021
Wisconsin: Tax Rate Schedule D remains in effect for 2021.
Below is a list of important upcoming deadlines:
Penalty Rate Protest Deadlines:
Colorado - December 20 // Illinois - December 17 // Iowa - December 18
Kansas - December 15 // New Mexico - December 30 // Ohio - December 24 ///
Oregon - December 3 // South Carolina - December 13 // Utah - December 16
Joint Account Deadlines:
Ohio - December 31 // South Carolina - December 31
Voluntary Contributions Deadlines:
Kansas - December 30 // Kentucky - December 28 // North Carolina - December 31(est)
Ohio - December 31 // South Dakota - December 31
COVID-19 Benefit Charge Relief
Please refer to the ValeU Group All-State Chart for further information.
CARES Act Follow-Up:
As Congress continues to work on another Stimulus Package to help those impacted by the COVID-19 Pandemic, it is important to understand how the states used the Relief Funds issued from the first CARES Act. Certain states have used a portion of their funds to replenish their State Unemployment Trust Funds, avoiding potential Unemployment Tax Rate increases for 2021. The National Conference of State Legislatures has put together an outstanding Database tracking how the Funds have been allocated which can be found at the below link.