Unemployment Challenges...SOLVED.


The Unemployment Line
                                                     Issue: 14
December 10, 2015 - In This Issue:
How Us4U Can Help 

Many of our clients found that after using Us4U's unemployment software applications, they have a significantly higher success rate on appeals due to the structure and functionality of our applications.  They have also lowered their Unemployment Tax Rate and have received over 13% of their audited charges credited back to their SUI account. 

Please reach out to me for a no cost and commitment free demonstration to experience the many benefits of our software application.  You can start saving your company precious time and money now!!


 

  
REQUEST A DEMO TODAY ON US4U's CLAIM AND BENEFIT CHARGE EXTRACTORS

Contact Us4U today for a quick demo of the Extractor 360 application.  See how efficiently and quickly you can validate and process your UI data!The application includes the following:

  • Unemployment claims extractor
  • Benefit charge extractor
  • Tax rate notice extractor

ARE YOU SIDES INTEGRATED?

Us4U is the 1st and Only Unemployment Insurance Software provider that is SIDES certified.  


Please call or email Us4U for a Free SIDES integration consultation. 

 

Act now and integrate your current systems with SIDES as this will be the future of all UI claim processing for employers. 


 

WHAT'S NEW - WOTC

Us4U is currently developing a new software product to manage Work Opportunity Tax Credits (WOTC). Employers will be able to manage, track certifications and allow employees to answer WOTC questions online and sign electronically.  


 

UNEMPLOYMENT TAX NEWS FROM AROUND THE NATION

Alaska

The Alaska Department of Labor and Workforce Development (DLWD) has posted 2016 unemployment tax rate information on its website. Unemployment tax rates for experienced employers will continue to range from 1.0% to 5.4%. New employer rates vary by industry. These rates will range from 1.69% to 2.10% in 2016. The standard new employer rate (new employers not assigned to a particular industry) will be 2.10% (2.45% in 2015). The taxable wage base will increase from $38,700 to $39,700. Employees must also make unemployment tax contributions. The employee unemployment tax withholding rate will decrease from 0.57% to 0.50% in 2016 (maximum withholding of $198.50) [DLWD website, "UI Finance and Tax Rate Calculations, Tax rates for 2016"].


Employers no longer have to pay the job training tax (JTT), beginning with the first quarter 2016 unemployment tax return. The JTT is currently 0.1% of taxable wages. Effective with the first quarter 2016 unemployment tax return, employers that are liable for unemployment tax must submit a payment even if the liability is less than $10.00 (currently, they don't have to submit a payment) [Arizona Department of Economic Security Employer Newsletter, Third Quarter 2015].

California

The Employment Development Department (EDD) has announced that unemployment tax rates for experienced employers will continue to range from 1.5% to 6.2% in the 2016 tax year (Schedule F+). The new employer rate will remain at 3.4%. The above rates do not include the employment training tax (ETT) rate, which will remain at 0.1%. The taxable wage base will remain at $7,000 [EDD website, "Rates, Withholding Schedules, and Meals and Lodging Values"].

Colorado


A spokesperson for the Colorado Department of Labor and Employment (DLE) has told RIA that unemployment tax rates for experienced employers will range from 0.77% to 10.14% in 2016 (0.78% to 10.2% in 2015). The new employer rate for non-construction employers will be 2.12% (2.13% in 2015). The new employer rate for employers with North American Industry Classification System (NAICS) codes 236 (general construction) and 238 (trades) will be 5.56% (6.34% in 2015). The new employer rate for employers with NAICS code 237 (heavy construction) will be 8.87% (9.67% in 2015). All of the above rates include a 24.47% bond principal repayment surcharge (25.20% in 2015). The taxable wage base increases from $11,800 to 12,200 in 2016.

Delaware


A spokesperson for the Delaware Division of Unemployment Insurance (DUI) has told RIA that unemployment tax rates for experienced employers will continue to range from 0.3% to 8.2% in 2016, including a 0.2% supplemental assessment rate. The new employer rate for non-construction employers will decrease from 2.1% to 1.9% in 2016. New employer rates for construction employers vary by industry. The new employer rate for construction employers with North American Industry Classification System (NAICS) Code 236 (general construction) will be 3.7% in 2016 (3.1% in 2015). The new employer rate for NAICS Code 237 (heavy construction) and NAICS Code 238 (trades) will range from 3.7% to 8.2%. The taxable wage base will remain at $18,500 in 2016.
Florida
Unemployment tax rates for experienced employers will range from 0.10% to 5.4% in 2016 (0.24% to 5.4% in 2015). The new employer rate will continue to be 2.7%. The taxable wage base will remain at $7,000 in 2016 [Florida Department of Revenue, "2016 Reemployment Tax Rates Fact Sheet"].

Kentucky


A spokesperson for the Kentucky Office of Employment and Training has told RIA that unemployment tax rates for experienced employers will continue to be determined under Schedule E in 2016. Rates range from 1.0% to 10.0%. The new employer rate will remain at 2.7%, except that new construction employers will pay 10.0%. The taxable wage base will increase from $9,900 to $10,200 in 2016. The interest surcharge is expected to remain at 0.21% in 2016.

Louisiana


Unemployment tax rates for experienced employers will continue to range from 0.10% to 6.20% in 2016. New employer rates vary by industry and will range from 1.22% to 3.04% (1.21% to 3.02% in 2015). The unemployment tax rate will be 6.20% if a North American Industry Classification System (NAICS) classification cannot be established for an employer that fails to submit a Louisiana unemployment account application. The above rates include a 10% rate reduction and the applicable social charge rate. The taxable wage base will remain at $7,700 in 2016 [Louisiana Workforce Commission, "2016 Unemployment Insurance Contribution Rate Table"].

Minnesota


Unemployment tax rates for experienced employers will continue to range from 0.2% to 9.10% in 2016. The new employer rate is 1.69%, except that new employers in high-experience-rated industries will pay 8.54%. These rates include the base tax rate of 0.1% and a 0.1% workforce development assessment fee on taxable wages. There is no additional assessment fee or federal loan interest assessment fee in effect in 2016. The taxable wage base will increase from $30,000 to $31,000 in 2016 [Unemployment Insurance Minnesota website, Overview of 2016 Tax Rates].

Missouri


A spokesperson for the Missouri Department of Labor and Industrial Relations (DL&I) has told RIA that unemployment tax rates for experienced employers without a shared-work plan will continue to range from 0.0% to 7.8% in 2016. Unemployment tax rates for employers participating in a shared-work program will continue to range from 0.0% to 11.7%. The above rates include a 30% contribution rate adjustment, but no other surcharges or adjustments. The new employer rate will remain at 3.51% in 2016. This rate is also in effect for new mining employers. The new employer rate for construction employers will decrease from 4.622% to 4.362% in 2016. The new employer rate for nonprofit employers will remain at 1.3%. The taxable wage base will remain at $13,000 in 2016 [Missouri DL&I website, Tax Rates ].
New Mexico
The New Mexico Department of Workforce Solutions (DWS) has announced that unemployment tax rates for experienced employers will continue to range from 0.33% to 5.4% in 2016. The new employer rate is the greater of the employer's industry average unemployment contribution rate or 1.0%. The taxable wage base will increase from $23,400 to $24,100 in 2016. Weekly unemployment benefits will range from $79 to $423 in 2016 [DWS
website, Information about 2016 Employer Tax Rates].

North Carolina


Governor McCrory has announced that employers will no longer have to pay a 20% surcharge on their unemployment tax liability beginning in the 2016 tax year. This is because North Carolina has paid off its federal unemployment debt. In addition, the unemployment trust fund is over $1 billion for the first time since May 2001. Employers have been paying the surcharge for ten years. [Governor McCrory website, "Governor McCrory Announces $1 Billion Reserve in Unemployment Trust Fund," 11/12/15].
 
Nebraska

Unemployment tax rates for experienced employers will generally be lower in 2016 but the minimum tax rate will continue to be 0.0% and the maximum tax rate will continue to be 5.4%. The new employer rate for non-construction and construction employers will remain at 1.25% and 5.4%, respectively. The taxable wage base will remain at $9,000 [Nebraska Department of Labor, "A Guide to Understanding Nebraska's 2016 Unemployment Insurance Combined Tax Rates"].

Ohio


The Ohio Department of Jobs and Family Services (DJFS) has announced that unemployment tax rates for experienced employers will range from 0.3% to 8.7% in 2016 (0.3% to 8.6% in 2015). The new employer rate will remain at 2.7%, except new construction employers will pay 6.4% (6.5% in 2015). Delinquent employers will pay 10.9% (10.8% in 2015). The mutualized tax is not in effect in 2016. The taxable wage base will remain at $9,000 [DFJS Office of Unemployment Compensation website, Contribution Rates].

Oregon


The Oregon Employment Department (OED) has announced that Tax Schedule 4 will be in effect for experienced employers in 2016 (Tax Schedule 5 in 2015). Rates will range from 1.2% to 5.4% (1.5% to 5.4% in 2015). The new employer rate will decrease from 2.9% to 2.6% in 2016. The taxable wage base will increase from $35,700 to $36,900 in 2016 [OED Press Release, "Unemployment Tax Rates for Oregon Employers to Decrease in 2016," 11/13/15].

Rhode Island


Unemployment tax rates for experienced employers will continue to range from 1.69% to 9.79% in the 2016 tax year (Schedule I). The new employer rate will decrease from 2.74% to 2.27%. The taxable wage base will increase from $21,200 to $22,000 for most employers. It will increase from $22,700 to $23,500 in 2016 for employers in the highest tax rate bracket (employers with an experience rate of 9.79% or higher) [Rhode Island Department of Labor and Training News Release, "Unemployment Insurance and TDI Tax Rates 2016 Announced," 11/24/15].

South Carolina


The South Carolina Department of Employment and Workforce (DEW) has announced that unemployment tax rates will be lower in 2016. The rates for experienced employers will range from 0.06% to 5.46% in 2016 (0.06% to 6.03% in 2015). The new employer rate will be 1.39% (1.55% in 2015). These rates include an interest surcharge and a 0.06% contingency assessment. The taxable wage base will remain at $14,000 in 2016 [DEW website, Tax Rates ].

Virginia


Virginia unemployment tax rates will generally be lower in 2016. A spokesperson for the Virginia Employment Commission (VEC) has told RIA that unemployment tax rates for experienced employers will range from 0.17% to 6.27% (0.44% to 6.54% in 2015). The new employer rate will be 2.57% (2.84% in 2015). New out-of-state contractors doing business in Virginia, delinquent employers, and non-rated experienced employers will pay 6.27% in 2016 (6.54% in 2015). The above rates include a 0.07% pool cost charge (0.14% in 2015). The reduction in the pool cost charge will save the average employer a maximum of $84 in 2016. In addition, Virginia employers will not have to pay the fund builder tax in 2016 because the UI trust fund is now solvent. This tax was 0.20% in 2015. As a result, employers across the state will save on average up to $240. The taxable wage base will remain at $8,000 in 2016 [Virginia Office of Governor Press Release, "Governor Announces Tax Savings for Virginia Employers in 2016," 11/17/15].

 
Contact:
Jennifer Casanova
jennifer.casanova@us4u.us                                               800.928.5750

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