Several states have released their state unemployment insurance taxable wage bases for 2024 in a chart provided and updated by PAYO.
Employers should be aware that due to unemployment insurance trust fund balances that are lower than anticipated and economic concerns regarding employer taxes, some states may make changes to their taxable wage bases later this year or early next year.
The list of state wage bases is from 2021 to 2024. To access from the PAYO home page select "Compliance" and then "State Unemployment Wage Bases" under "Overview."
The Federal Unemployment Tax Act (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 the 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.
Interested in more state and local payroll coverage? PayrollOrg's PayState Update eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.