So far, there are 24 states that have updated their taxable wage base amount for 2019. All of them with the exception of two are increasing the taxable wage base.
The taxable wage base is the top end cap of how much of an employee’s earned income is taxable against the employers account for unemployment tax purposes. For instance, if an employee makes $50,000 annually in Colorado, and the employers unemployment tax rate is 5%. In 2019, they will pay 5% on the first $13,100 of the employee’s wages, which is $655.00 in this example.
As displayed by these modifications outlined above, a contributory employer’s unemployment taxes can rise and fall based upon state factors such as adjustments to the taxable wage base deployed, the tax rate table utilized, tax surcharges, etc.
If you have any questions about how taxable wage base changes will affect your unemployment tax expenditures, you may reach out to your tax analyst at Employers Edge for assistance.