SUTA 2023 Cost Changes

SUTA 2023 Cost Changes

Unemployment insurance tax rate and wage base updates listed below have been announced. Nonprofit, governmental, and tribal entities should take a closer look at what these changes could mean for their budget. While for-profit entities are bound by these changes and requirements, nonprofit, governmental and tribal entities have options.

Note: Nonprofit, governmental, and tribal entities are exempt from FUTA (Federal Unemployment Tax Act).

Click here for 2022 SUTA cost factors.

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Alabama

SUTA rates for 2023 range from 0.2% to 5.4%, while the unemployment taxable wage base remains at $8,000.

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Alaska

SUTA 2023 employer rates range from 1% to 5.4%. Alaska’s employee rate decreased to 0.51% (down from 0.56% in 2022). The unemployment taxable wage base for 2023 is $47,100 (up from $45,200).

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Arizona

SUTA rates in 2023 range from 0.07% to 18.78%, while the the new employer rate remains 2%. For the first time in decades, Arizona’s wage base increased from $7,000 to $8,000.

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Arkansas

SUTA rates for employers range from 0.3% to 14.2% and the wage base is set at $7,000 for 2023.

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California

No rate changes were reported in California, with the wage base holding at $7,000.

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Colorado

Colorado’s wage base increased from $17,000 to $20,400 in 2023 and will continue to increase to $23,800 in 2024, $27,200 in 2025, and $30,600 in 2026. Each year thereafter, the wage base will be adjusted by the change in Colorado’s average weekly earnings. Effective October 1, 2023, the maximum weekly benefit increased to $721.

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Connecticut

A new law has been introduced that will increase the taxable wage base to $25,000 beginning January 1, 2024 and expand the max rate up to 10%. 2023 SUTA rates range from 1.7% to 6.6%. Connecticut’s new employer rate dropped to 2.8% (down from 3.0%). The fund solvency tax is reduced to 1.2% (down from 1.4%). The 2023 wage base is holding at $15,000. Effective October 1, 2023, the minimum weekly benefit amount increased from $15 to $40, and the maximum weekly benefit increased from $703 to $721.

Delaware

2023 SUTA rates range from 0.30% to 5.60% for employers in Delaware. The taxable wage base decreased to $10,500. The maximum weekly benefit amount will increase from $400 to $450 for new claims filed on or after April 2, 2023.

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Florida

As of January 2023, no rate changes were reported in Florida, with the wage base holding at $7,000.

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Georgia

2023 SUTA rates range from 0.06% to 8.10% in Georgia, with the wage base holding at $9,500. Effective January 2024, Georgia will reinstate the 0.06% administration assessment tax through 2026.

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Hawaii

The SUTA rate for new employers increased to 4% (up from 3%). The maximum SUTA rate for experienced employers Increased to 6.2% (up from 5.8%). Hawaii’s unemployment taxable wage base increased to $56,700 for 2023 (up from $51,600). Hawaii’s maximum weekly benefit amount that a former employee can collect in unemployment increased to $763 (up from $695).

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Idaho

Idaho’s wage base increased to $49,900 (up from $46,500 in 2022). SUTA rates for employers in Idaho include a variety of surtaxes, but the net tax rates range from 0.207% to 0.691% for positive rated employers, while the net tax rates for negative-rated employers range from 1.245% to 5.4% in 2023. An administrative reserve-fund surtax (ranging from 0.03519% to 0.32912%) and a workforce development training-fund surtax (ranging from 0.00621% to 0.05808%) may also be charged.

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Illinois

SUTA rates range from 0.85% – 8.65% for 2023. The Building Fund and State Experience Factor rates that make up SUTA rates in Illinois both increased from 0.525% to 0.55% and from 111% to 127%, respectively. The taxable Wage Base also increased from $12,960 to $13,271. Weekly benefit amounts are also increased 6.5%.

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Indiana

Unemployment tax rates range from 0.50% to 7.40% in 2023 and through 2025. The wage base holds at $9,500.

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Iowa

SUTA rates range from 0% to 7% in 2023. The unemployment taxable wage base increased from $34,800 to $36,100.

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Kansas

2023 SUTA rates range from 0.17% to 6.40% for employers in Kansas, with the wage base holding at $14,000.

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Kentucky

Unemployment tax rates range from 0.30% to 9.00%. A 0.075% Service Capacity Upgrade Fund assessment is included in employer rates, but those tax contributions will not be made to employers’ reserve accounts. The taxable wage base increased from $10,800 to $11,100.

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Louisiana

SUTA rates for Louisiana employers range from 0.09% to 6.20%. The 2023 wage base remains at $7,700.

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Maine

2023 SUTA will be collected under Maine’s unemployment tax schedule “A”, the lowest allowed, ranging from 0.22% to 5.69%. SUTA rates include a 0.07% competitive-skills scholarship fund assessment and a 0.15% unemployment program administrative fund assessment (up from 0.14%). The 2023 wage base is holding at $12,000. The maximum weekly benefit amount increased from $974 to $1,033, effective October 1, 2023.

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Maryland

2023 SUTA rates range from 1.0% to 10.5%, with the wage base holding at $8,500.

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Massachusetts

Massachusetts’s 2023 unemployment tax rates range from 0.56% to 8.62%. Experienced employers also pay an additional COVID-19 Recovery Assessment rate ranging from 0.708% to 10.896%. The unemployment taxable wage base continues to hold at $15,000.

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Michigan

Michigan’s 2023 SUTA rates range from 0.6% to 10.3%, with the wage base holding at $9,500.

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Minnesota

SUTA rates for Minnesota employers range from 0.2% to 9% (including a base tax rate of 0.10%) in 2023. The wage base increased to $40,000 (up from $38,000 in 2022).

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Mississippi

Mississippi’s 2023 SUTA rates range from 0.20% to 5.60%, with the wage base holding at $14,000.

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Missouri

2023 rates range from 0.0% to 6.975% for employers in Missouri. The wage base decreased from $11,000 to $10,500 in 2023.

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Montana

SUTA rates range from 0.13% to 6.3% in 2023. The administrative fund tax remains 0.13% for employers with a 0.0% SUTA rate and 0.18% for all other employers. The 2023 wage base increased from $38,100 to $40,500.

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Nebraska

SUTA rates in 2023 range from 0% to 5.4%, with the wage base holding at $24,000. The maximum weekly benefit amount increased to $514.

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Nevada

SUTA rates for experienced employers range from 0.3%-5.4% in 2023, while the new employer rate is set at 3%. The unemployment taxable wage base increased to $40,100 (up from $36,600).

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New Hampshire

For the 4th quarter of 2023, tax rates range from 0.1% to 1.7% for positive-rated employers. Tax rates for negative-rated employers range from 3.3% to 7.5% (including a 0.5% surcharge). The wage base will remain at $14,000.

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New Jersey

New Jersey’s July 2022-June 2023 employer unemployment tax rates were issued on August 24, 2022. They now range from 0.6% to 6.4%. Rates will range from 1.2% to 7.0% for fiscal year 2024 (July 1, 2023 through June 30, 2024), unless calculations call for a lesser rate range. The 2023 taxable wage base increased to $41,100. New Jersey’s unemployment tax rate for employees is 0.425%, unchanged from 2022.

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New Mexico

SUTA rates range from 0.33% to 5.4% for employers in New Mexico. The taxable wage base increased to $30,100, up from $28,700.

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New York

New York’s SUTA tax rates range from 2.1% to 9.9%. The unemployment wage base has increased to $12,300 and is scheduled to increase every year through 2026.

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North Carolina

SUTA 2023 rates range from 0.06% to 5.76% for experienced employers, while the new employer rate is set at 1%. The taxable wage base is $29,600 (up from $28,000).

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North Dakota

North Dakota’s 2023 SUTA rates range from 0.08% to 9.97%, with the wage base increasing to $40,800 (up from $38,400 in 2022).

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Ohio

SUTA rates in Ohio range from 0.8% to 10.3% in 2023, with the taxable wage base holding at $9,000.

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Oklahoma

SUTA rates range from 0.3% to 9.2% for 2023 and the wage base increased to $25,700. The maximum weekly benefit amount also increased to $493.

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Oregon

2023 SUTA rates for experienced Oregon employers range from 0.7% to 5.4%. The unemployment taxable wage base increased to $50,900 (up from $47,700 in 2022).

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Pennsylvania

SUTA rates for experienced employers range from 1.419% to 10.3734% in 2023. Experience rates include a solvency surcharge and an additional contribution rate. Both of these rates increased in 2023. The solvency surcharge rate increased to 9.2% (up from 5.4% in 2022) and the additional contributions rate increased to 0.6% (up from 0.5% in 2022). The tax rate for employees also increased to 0.07% (up from 0.06% in 2022), with the wage base holding at $10,000.

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Puerto Rico

SUTA rates in Puerto Rico range from 3.4% to 5.4% in 2023, with the taxable wage base holding at $7,000.

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Rhode Island

2023 SUTA rates for experienced employers in Rhode Island range from 1.1% to 9.7%. The unemployment taxable wage bases is $29,700 for employers with the highest SUTA rate and $28,200 for all other employers.

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South Carolina

SUTA rates for range from 0.06% to 5.46%, with the wage base holding at $14,000.

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South Dakota

Unemployment tax rates range from 0% to 9.85%, with the wage base holding at $15,000.

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Tennessee

Effective July 1, 2023, through December 31, 2023, SUTA rates range from 0.01% to 2.3% for positive-balance employers and from 5.0% to 10.0% for negative-balance employers. The new employer rate in Tennessee remains at 2.7% as does the taxable wage base at $7,000. The duration of claims established after December 1, 2023 converts to a range based on the state’s average unemployment rate. That range will provide for a maximum of 12 weeks if the state’s average unemployment rate is at or below 5.5% and up to 20 weeks if the state’s average unemployment rate exceeds 9%. The maximum weekly benefit amount increases from $275 to $325, for claims established after December 1, 2023.

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Texas

SUTA rates for 2023 range from 0.23% to 6.23%, with the wage base holding at $9,000. SUTA rates include a 0.13% replenishment tax and a 0.1% employment training and investment assessment. The Texas minimum weekly benefit amount increased from $72 to $73 and the maximum weekly benefit amount increased from $563 to $577, effective October 1, 2023.

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Utah

SUTA rates for Utah employers range from 0.3% to 7.3% (including a social tax rate of 0.3%). The taxable wage base for 2023 increased from $41,600 in 2022 to $44,800. The maximum weekly benefit amount also increased to $712.

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Vermont

Effective from July 1, 2022, to June 30, 2023, unemployment tax rates range from 0.4% to 5.4%. The 2023 wage base decreased to $13,500.

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Virginia

Virginia’s 2023 SUTA rates range from 0.13% to 6.23%, with the wage base holding at $8,000.

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Washington

Unemployment tax rates range from 0.27% to 6.03% and the maximum social tax is set at 0.70%. Washington’s 2023 increased to $67,600.

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Washington, D.C.

2023 SUTA rates range from 2.10% to 7.60% and the taxable wage base remains unchanged at $9,000.

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West Virginia

As of January 2023, SUTA rates range from 1.5% to 8.5% in West Virginia, with the wage base holding at $9,000.

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Wisconsin

SUTA rates range from 0.00% to 12.00%, with the wage base holding at $14,000.

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Wyoming

SUTA rates range from 0.0% to 8.5% in Wyoming. The wage base increased to $29,100.

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Testimonials

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Prevent Blindness America, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools, Chicago, IL

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.

Thresholds, Chicago, IL

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.

Ensight Skills Center, Inc, Fort Collins, CO