Thomas & Thorngren

States are in the process of establishing their unemployment taxable wage bases for 2012.  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.    * The 2012 taxable wage base for Rhode Island employers in the highest tax group [...]

Every January we remind clients with payroll in Alaska about the Option Forms that can be used to possibly reduce your UI tax rate.  The option forms allow you to adjust for artificial variances in your quarterly payrolls caused by such payments as an extra bi-weekly payroll in a quarter, bonuses, and lump sum payments. [...]

The federal unemployment tax rates for 2011 have now been finalized (see table below).      Employers in 20 states and the Virgin Islands (up from 3 states last year) with long-term UI loans must pay higher FUTA taxes for 2011. The gross FUTA tax rate is 6.20% on the first $7,000 of wages per [...]

Last month President Obama submitted to Congress the legislative text of his American Jobs Act.  The text is available at http://www.whitehouse.gov/economy/jobsact/read-the-bill. Following are comments regarding the provisions that are related to unemployment compensation:  The bill would extend 100% federal funding of most extended benefits (EB) by one year.  The federal funding would include EB paid [...]

Currently a combination of regular unemployment benefits (UI), extended benefits (EB) and emergency unemployment compensation (EUC) is available to many individuals who become unemployed and who meet the eligibility requirements.  The combined benefits can be paid for as long as 99 weeks, depending on the state and the level of unemployment in that state.  This [...]

The Delaware Department of Labor has announced a plan to repay the interest due on the outstanding $62.5 million in federal loans to the state’s unemployment trust fund.  The state’s fiscal year 2012 budget includes a provision to repay the $3.7 million in accrued interest due in November of this year.  As a result, Delaware [...]

On June 27, 2011, Governor Rick Scott signed House Bill 7005 into law.  This bill contains temporary UI tax relief for 2012 through 2014 and tightens eligibility for UI benefits. Change in tax rate calculation for 2012 through 2014 As a benefit-ratio state, Florida assigns employers an unemployment tax rate by comparing an employer’s total [...]

The temporary 0.20% FUTA surtax, which began in 1976, appears to be gone for good.  We have been skeptical that it would actually be allowed to expire, since it has been extended eight times, but it has in fact expired and there is no hint of any effort to renew it retroactively.  In fact, the [...]

To cover the rising cost of unemployment, the Wisconsin Department of Workforce Development has been forced to borrow $1.3 billion federal funds.  Unless Congress acts to waive the interest attributable to this loan, the first interest payment will become due on October 1, 2011.  Although it is still possible for Congress to waive the interest [...]