Thomas & Thorngren

We have now received UI tax rate notices for calendar year 2011 from twenty-one states.  As anticipated, tax rates are trending higher. In thirteen of the states, a higher tax rate table and/or higher adjustment factors take effect for 2011.  The most significant increases (so far) are in Colorado, Florida, and Washington.  Many of these [...]

On December 17, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  In addition to extending the Bush-era tax cuts for 2 more years, this bill retroactively extended a number of expired provisions of interest to clients, including the Federal Empowerment Zone Tax Credit, the Washington DC [...]

There has been a lot of publicity about the “UI extension” part of the tax package that is being discussed.  As the Senate completes its edits before voting on the package I wanted to clarify the provisions relating to unemployment. 1.     Emergency Unemployment Compensation (EUC) Extension.  The bill extends the period during which individuals may [...]

States have begun the process of establishing their unemployment taxable wage bases for 2011.  Below is a listing of the taxable wage bases that we have obtained thus far.  Regular updates will be made available on our website at www.thomasandthorngren.com.  If there are any questions, please contact us. Click here for a printable version.

Your South Dakota unemployment tax report forms may be a little puzzling this year because a surcharge keeps changing.  The surcharge triggers on whenever the State’s Unemployment Trust Fund balance dips below $11.0 Million and remains in effect until the Trust Fund balance exceeds $16.5 Million.  This surcharge is not included on your annual unemployment [...]

The Employment Development Department has issued an announcement stating that, beginning with the first quarter of 2011, California employers will report wages and contributions for Unemployment Insurance, Employment Training Tax, and State Disability Insurance, as well as Personal Income Tax withholdings quarterly on Form DE 9 instead of annually on the Annual Reconciliation Statement (DE 7).  [...]

We expect UI taxes to trend higher again in 2011, as the payout of unemployment benefits has continued at an elevated pace, putting continued pressure on the state UI trust funds.  However, there will be significant differences in this trend from state to state.  Employers in Hawaii and Massachusetts can expect much higher tax rates.  [...]

Senate Bill 1736 was approved by Governor Crist on May 17, 2010, making several changes to Florida Employment Security Law.  One significant provision relating to unemployment claims will take effect on July 1st. Currently there is no time limit established in statute for requiring employers to respond to a notice of claim.  An employer may respond [...]

Legislation signed by Governor Sanford on June 3, 2010 will change the way UI tax rates are calculated in South Carolina beginning next year.  The legislation (Senate Bill 391) addresses the deficit in the state’s Unemployment Insurance Trust Fund.  A projection of the impact on your 2011 UI tax rate(s) is not yet available.  However, [...]

Many state UI statutes require that an employer with an outstanding balance due on the computation date must be assigned a penalty tax rate for the next calendar year.  In 36 states the computation date is June 30 or July 1. We encourage you to check for any outstanding assessments, debit memoranda, or other statements [...]