This article first appeared on the Thomson Reuters blog.
This month, let’s discuss unemployment rates. Most states set unemployment rates using individual company fund balances, type of industry and experience.
The following states also allow companies to “buy down” their individual unemployment rates for the next year by making a voluntary contribution. This calculation is available on the state websites (e.g. Massachusetts website).
This is helpful to research and advise clients on — for example, if your business client is anticipating increasing their labor size in the next year, it may be cost effective to make a voluntary contribution. Be aware — if advising on the matter, there are strict deadlines when this contribution can be made to reduce their next year rate. If the employer is late, the rate will not be reduced — but money is not lost, it will just go into your individual company fund balance.
Below is a list of states that allow voluntary contributions and the due dates.
|State||Due Date||State||Due Date|
|Arizona||Jan 31||Missouri||Postmarked Jan 15|
|Arkansas||Postmarked Mar 31||Nebraska||Jan 10|
|California||Mar 31||New Jersey||30 days after notice|
|Colorado||Mar 15||New York||Mar 31|
|Georgia||30 days after notice||North Carolina||30 days after notice|
|Indiana||30 days after notice||North Dakota||Apr 30|
|Kansas||30 days after notice||Ohio||Dec 31|
|Kentucky||20 days after notice||Pennsylvania||30 days after notice|
|Louisiana||30 days after notice||South Dakota||Dec 31|
|Maine||30 days after notice||Texas||60 days after notice|
|Massachusetts||30 days after notice||Washington||Received by Feb 15|
|Michigan||30 days after notice||West Virginia||30 days after notice|
|Minnesota||120 calendar days after Jan 1||Wisconsin||Nov 30|
Most states use June 30 as a benchmark for determining the next year SUI wage bases. This is known as the “computation date”. Many states can take from four to nine months after the computation date to make their announcements.
Also, several states use different dates for “computation date” calculations:
|State||Due Date||State||Due Date|
|Delaware||Oct 1||North Carolina||Aug 1|
|Hawaii||Dec 31||North Dakota||Sep 30|
|Kentucky||Jul 31||Oklahoma||Sep 30|
|Massachusetts||Sep 30||Rhode Island||Sep 30|
|Montana||Sep 30||Tennessee||Dec 31*|
|Nebraska||Dec 31||Texas||Oct 1|
|New Hampshire||Jan 31||Vermont||Dec 31*|
|New Jersey||Dec 31||U.S. Virgin Islands||Sep 30|
|New York||Dec 31|
* July 1 wage base resets
Want more resources? We have you covered!
- Thomson Reuters myPay Solutions payroll services for accountants keeps clients in compliance with these rates and provides accurate payrolls, so you and your clients don’t have to worry about it.
- For processing payroll in-house, Thomson Reuters Accounting CS® Payroll includes an unbeatable collection of compliance resources, including an extensive library of federal, state and local forms — plus, it’s regularly updated for payroll tax rates, limits and minimum wage rates.
- To keep your payroll staff informed, we recommend the Payroll Guide and other payroll publications. This guide provides analysis of deposit and reporting requirements, Social Security and Medicare taxes, federal unemployment tax, state unemployment and disability, benefits law, federal and state wage-hour laws, garnishments and child support withholding and more.
James Paille CPP is the Director of Operations for Thomson Reuters myPay Solutions. He has been an executive manager in the payroll service industry for more than 30 years, specializing in managing multi-location offices. Jim is President of the American Payroll Association as well as a member of the National Speakers Bureau and chair of the CPP Certification Review Panel. He holds a Bachelor of Science in Accounting from St. John Fisher College in Rochester, NY.