![]() Legislation passed in 2021 ( SB 89/Act 91) requires that the taxable wage base remains at $7,7. ( Chapter 177.) The taxable wage base is expected to continue to increase by $300 each calendar year until it reaches $12,000. HB 413 would also have frozen the rate schedule to Schedule A and taxable wage base to $10,800 for calendar year 2022 however, Governor Andy Beshear line-item vetoed the provisions that extended the UI tax relief to calendar year 2022, saying that the state should wait and see until 2022 because "the Commonwealth's financial situation is fluid." The legislature did not override the governor's veto. Revised tax rate notices were issued in April 2021. In 2021, HB 413/Chapter 177 reduced the 2021 SUI taxes by freezing the rate schedule to Schedule A, the lowest rate schedule provided for by law, and the 2021 taxable wage base to $10,800, the same rate schedule and taxable wage base that applied in 2020. ![]() In 2019, legislation ( HB 198) froze the taxable wage base at $16,5 (under the bill language from Jto October 29, 2020) so that the Division of Unemployment Insurance and the Unemployment Compensation Advisory Council could determine whether the formula used to calculate the annual figure should be revised. The higher the trust fund balance, the lower the taxable wage base. In 2013, legislation ( HB 168) increased the SUI taxable wage base to a minimum of $10,500 and a maximum of $18,500 by linking the wage limit to the balance of the state's unemployment trust fund. Beginning with calendar year 2025, the taxable wage base will be indexed each year for inflation. After 2026, the taxable wage base will be adjusted by changes in the annual average weekly wage.Ī law passed in 2021 (HB 6633/Public Act 21-200) increases the SUI taxable wage base for calendar year 2024 to $25,000, up from the current $15,000. Legislation in 2020 ( SB 20-207) held the SUI taxable wage base at $13,600 for calendar year 2021 with incremental increases each year thereafter until it reaches $30,600 in 2026. Absent this legislation, and due to the continuing effect on the state's UI trust fund of the COVID-19 pandemic, the SUI wage base could have increased to $11,000 or $12,0. This increase is intended to fund the rise in the maximum weekly UI benefit amount, which effective July 1, 2022, will increase to $320, up from $240.Īs a result of 2021 legislation ( HB 1409/Act 368), the SUI taxable wage base for calendar year 2022 will remain $10,000, the same as it was in 2021. TBD: 2022 wage base was not available as of the time of this printingĮffective January 1, 2023, legislation ( SB 1828/Chapter 412) will increase the SUI taxable wage base to $8,000, up from $7,000. In issuing 2022 SUI tax rate information and notices. *** Due to the continued effect of COVID-19 UI benefit claims on state UI trust fund balances, the state is delayed * Law sets the taxable wage base legislation would be necessary to change. Department of Labor, Comparison of State Unemployment Laws, 2020, state law information webpage email response to inquiry.)Ī preliminary look at the 2022 state unemployment taxable wage basesįollowing is a preliminary list of the 2022 SUI taxable wage bases (as compared to 2021) and employee SUI withholding rates, if applicable.Įmployee SUI withholding rate is 0.56% on wages up to $45,200Įmployee SUI withholding rate is 0.425% on wages up to $39,800Įmployee SUI withholding 0.06% on total wages Department of Labor (US DOL), 24 jurisdictions had a flexible wage base in 2020 (the US DOL expects the 2021 information will be available by the end of December 2021). ![]() ![]() Consequently, the SUI wage base is flexible in those states, meaning, it is indexed to the average wage or varies based on the trust fund balance. Some states are conservative in their approach to maintaining adequate SUI trust fund reserves. The 2022 FUTA wage limit of $7,000 has remained unchanged since 1983, despite increases in the federal minimum wage and annual cost-of-living adjustments over the last 36 years. States are required to maintain an SUI taxable wage base of no less than the limit set under the Federal Unemployment Tax Act (FUTA). State unemployment insurance (SUI) trust funds are largely financed by employer contributions (in Alaska, New Jersey and Pennsylvania employees also make contributions). ![]() A preliminary look at the 2022 SUI taxable wage bases ![]()
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