A number of states have recently announced changes to their unemployment taxable wage bases that will take effect in 2016. (See chart below)
What is a state unemployment taxable wage base?
This is the maximum amount on which an employer must pay to unemployment taxes for each employee. For example, an employer in Kansas must pay unemployment taxes on the first $14,000 an employee earns throughout the 2016 calendar year.
Why is this information important?
An increase in the taxable wage base can also mean an increase in unemployment tax cost per employee. For example, if an employer in Washington had a 1.0% unemployment rate in 2015, their cost per employee would be $421 ($42,100 x 1.0%). In 2016, that cost would increase to $440, should their tax rate remain at 1.0% ($44,000 x 1.0%).
First Nonprofit Group offers several options to help nonprofit employers avoid these increases. Contact us today to request a free, no obligation savings quote!
