Employers should be aware that due to state unemployment insurance (UI) trust fund balances that are lower than anticipated and economic concerns regarding employer UI taxes due to COVID-19, some states may change their taxable wage bases. Kentucky has adjusted its UI taxable wage base. For 2021, it was supposed to be $11,100, but remains $10,800 (unchanged from 2020).
An updated chart of State Taxable Wage Bases for 2018 to 2021 (as of April 16, 2021) may be downloaded. To access the chart from the APA home page select “Compliance” and then “State Unemployment Wage Bases” under “Overview.”
Many states have also delayed setting employer UI tax rates for 2021 or adjusted them due to COVID-19.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.