The most comprehensive resource available for payroll professionals. This service provides payroll news, white papers, custom research answers, webinars on the hottest payroll topics, survey and...
Employers in two jurisdictions are to pay higher payroll costs for 2017 because of Federal Unemployment Tax Act credit reductions, unchanged from 2016, the Labor Department said Nov. 13 in a credit-reduction assessment list.
Employers are assessed a higher federal unemployment tax rate than the standard effective rate of 0.6 percent on wages paid for work performed in or otherwise attributable to credit-reduction jurisdictions because the tax credit they can apply on such wages is less than the maximum credit of 5.4 percent.
California and the U.S. Virgin Islands each are to have a general FUTA credit reduction of 2.1 percent, causing employers in these jurisdictions to be assessed an additional federal unemployment tax cost of up to $147 for each employee for 2017.
An extra credit reduction, the benefit-cost rate (BCR) add-on, could have been in effect for the U.S. Virgin Islands for 2017, but the federal Labor Department approved the jurisdiction’s application for relief from the add-on. Approval of the relief allowed employers in the U.S. Virgin Islands to avoid a BCR add-on of 1.1 percent, a cost of up to $77 for each employee.
The Labor Department also approved California’s BCR waiver application, though the state did not have a potential BCR add-on for 2017, the department said.
Increases to unemployment-taxable wage bases for 2018 were acknowledged by 11 states: Colorado, Iowa, Montana, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Vermont, and Washington.
These states are to decrease unemployment-taxable wage bases for 2018: Arkansas, Delaware, New Mexico, Oklahoma, and Wyoming.
Washington’s 2018 wage base, $47,300, is to be the highest unemployment wage base ever applied.
In the accompanying wage base comparison chart, changes for 2018 are in bold. Wage bases that decreased are in bold italic.
|Dist. of Columbia||9,000||9,000|
|Rhode Island||22,400; 23,9002||*|
* Wage bases to be announced.
1 For each year when Michigan’s unemployment trust fund balance was sufficiently high during the previous year, Michigan employers not delinquent in paying unemployment-related amounts are assigned a reduced taxable wage base.
2 Experienced Rhode Island employers that are assessed the maximum unemployment tax rate are assigned a higher wage base.
3 Tennessee’s wage base may change July 1 if the state’s unemployment trust fund balance Dec. 31 and then June 30 each are at a level that would require a wage base change.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)