Your State’s Unemployment Tax Laws: Massachusetts

We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate you about how these laws may differ from state to state because they can affect you directly. So, join us on our continuing series, in which we explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Massachusetts. For most employers in the state of Massachusetts, contributions to the unemployment insurance tax must be made if you have any employees working one or more days in each of 13 weeks during a calendar year. Alternatively, if you pay wages in excess of $1,500 in any calendar quarter, you are required to pay the UI tax. However, there are some industries that are held to different standards. Certain industries such as agriculture, domestic workers, and out-of-state employers have different criteria they must meet as outlined below. Agriculture: these employers become liable for UI contributions once total cash wages of $40,000 or more have been paid in a calendar quarter or 10 or more individuals were employed on any day in each of 20 weeks in a year. Domestic Workers: these employers become liable for UI contributions once $1,000 or more in wages has been paid in any calendar quarter. Out-of-State Employers: these employers...

Your State’s Unemployment Tax Laws: Nevada

We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate you about how these laws may differ from state to state because they can affect you directly. So, join us on our continuing series, in which we explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Nevada. In the state of Nevada, “employing units,” which are considered to be any individual or organization involved in a partnership, association, trust, estate, joint-stock company, insurance company, corporation, or receiver/trustee in bankruptcy, must register with the Employment Security Division (ESD) and pay taxes on wages paid in excess of $225 during any calendar quarter. If an employing unit falls under these criteria, a Taxable Wage Base amount must be multiplied by an annual unemployment tax rate to determine the amount of an employer’s UI tax liability. Nevada’s Taxable Wage Base is calculated annually to be 2/3 percent of the average annual wage for Nevada employees. These wages must be reported to the ESD each quarter for each employee under an employing unit. However, any wages paid to each employee, which exceed the Taxable Wage Base during the calendar year are not taxed. The following table details the most recent Taxable Wage Base amounts in...

Your State’s Unemployment Tax Laws: Washington

We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate you about how these laws may differ from state to state because they can affect you directly. So, join us on our continuing series, in which we explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Washington. Typically, under the Federal Unemployment Tax Act (FUTA), for-profit employers are liable for both state and federal unemployment insurance taxes if they have paid employees $1,500 or more in total wages in a calendar quarter or had at least one employee during any day of a week during 20 weeks in a calendar year, regardless of whether or not the weeks were consecutive. However, in the state of Washington, there is no minimum amount of wages required for employers to pay unemployment taxes each year. Instead, employers are held liable for unemployment insurance taxes simply for employing a single individual. If a claimant is found to be eligible for unemployment benefits, a Taxable Wage Base amount must be multiplied by an annual unemployment tax rate to determine the amount of an employer’s UI tax liability. First, we’ll discuss the state’s Taxable Wage Base. In Washington, the Taxable Wage Base amount changes annually based on...

Your State’s Unemployment Tax Laws: Ohio

We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate about how these laws may differ in your state because they affect you directly. So, we have begun a series in which we will explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Ohio. In Ohio, the maximum amount of earned individual employee income (Taxable Wage Base) upon which an employer is required to pay unemployment taxes each year is $9,000. This amount is calculated based on the first $9,000 that an employee has earned in a calendar year. However, for a claimant to qualify for unemployment benefits, s/he must have worked 20 weeks during the base period, established by the first four calendar quarters of the last five before the benefit account would begin. If the claimant does not qualify for this “regular” base period, s/he may still be eligible under an “alternate” base period for unemployment benefits if s/he has worked 20 weeks in the last four calendar quarters. The following is an example of how both the “regular” and “alternate” base periods are determined. If the claim began between these dates: The regular base period would be: January 1, 2017 – April 1, 2017 October 1, 2015 –...

The Unemployment Insurance System’s Lofty Intentions, Turned Troubles

When the Social Security Act of 1935 was enacted, a variety of provisions were put in place to keep the economy stable in times of hardship. One of those provisions was Unemployment Insurance (UI), of which one of the intentions was to reward employers with lower unemployment tax rates by minimizing workforce turnover. However, since that time, the UI system has grown to be more of a detriment to employers and the economy, becoming ever more complex and costly. It seems that since 1935, the lofty intentions for the Unemployment Insurance System have turned into troubles that are weighing down today’s economy and the everyday business owner. Among the most glaring troubles with the UI system is its lack of payment accuracy. It has been reported by the United States Department of Labor, using the Benefit Accuracy Measurement (BAM), that in one financial quarter, an estimated $3.9 billion is improperly distributed to UI recipients. This number can indicate claims that were either overpaid, underpaid, or improperly denied. According to the data presented for 2016’s fourth quarter, an estimated $2.1 billion was overpaid, out of a total of $33.2 billion in payments. Regardless of the UI system’s intention, that is a lot of money overpaid, and an even greater amount paid in general. Fortunately, there are methods that employers may undertake to counteract these inaccuracies, such as the software offered by Us4U. They offer solutions that help you manage, track, and most importantly audit your UI claims and charges in addition to maintaining the lowest tax rate possible. However, to some extent the level of impact does depend on geography....

How Your Unemployment Tax Rates Are Computed

As business owners, taxes may seem like an inevitable fact of life. Much like how you have to buy gas to keep your car in motion, you have to pay your taxes to keep your business compliant with state and federal laws. Sometimes, you even have to spring for that premium level cost if your business has a hefty amount of unemployment claims. The good news is that your unemployment taxes are the only taxes that you can control. On that note, by controlling that cost you can help your company spend its resources on more pressing costs that will help it continue to grow. What to Know About Your Unemployment Tax Rates What are Unemployment Taxes? You have unemployment taxes because of the Federal Unemployment Tax Act, a federal law that imposes an employer tax to help fund state workforce agencies. You, as a business, report this tax annually by filing a Form 940 with the IRS. What is My Unemployment Tax Rate? Your tax rate can vary by state to state or by how many unemployment claims have been made against your company. Generally speaking, every state assigns a standard rate for employers newly in business.  The New Employer Rate may be assigned for 1-3 years.  After that, the rate for the following years are based on your own history of benefit charges and taxable payroll. What are the 3 Components of My Unemployment Tax Rate as an Experience Rated Employer? Most states look at the following three components in determining your tax rate: Benefit charges paid Taxable Payroll Contributions (taxes) paid What Can Affect My Unemployment...