Most states have released their state unemployment insurance (SUI) taxable wage bases for 2019. The APA website has a list of the SUI taxable wage bases from 2016-2019, and it will continue to be updated with the wage bases of the remaining states.
Following the Federal Unemployment Tax Act (FUTA) scheme, SUI contributions (taxes) are determined by applying a certain percentage to the taxable wages paid by the employer. FUTA requires that each state’s taxable wage base must at least equal the FUTA taxable wage base of $7,000 per employee, and most states have wage bases that exceed the required amount. The states use various formulas for determining their taxable wage base, with a few tying theirs by law to the FUTA wage base and others using a percentage of the state’s average annual wage.
For more information on SUI taxable wage bases and tax rates, see APA’s Guide to State Payroll Laws, Table 8.2 – Unemployment Insurance Taxable Wage Bases, Contribution Rates, and Experience Rating Methods.
Interested in more state and local payroll coverage? APA’sPayState UpdateeNewsletter is perfect for you.
