SUTA (State Unemployment Tax) 2023 Cost Changes

SUTA (State Unemployment Tax) 2023 Cost Changes

The 2023 SUTA cost changes 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

No SUTA rate changes were reported for Alabama, with the unemployment taxable wage base remaining steady at $8,000.

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Alaska

Alaska’s taxable wage base is estimated to increase to $46,800 (up from $45,200) for all employers.

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Arizona

For the first time in decades, Arizona’s wage base will increase from $7,000 to $8,000.

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Arkansas

No changes were reported for Arkansas, with the unemployment wage base holding at $7,000.

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California

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

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Colorado

Colorado’s wage base will increase from $17,000 to $20,400 in 2023, $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.

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Connecticut

No changes were reported in Connecticut, with the wage base holding at $15,000. 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%.

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Delaware

No changes were reported in Delaware, with the wage base holding at $14,500.

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Florida

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

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Georgia

No changes were reported in Georgia, with the wage base holding at $9,500.

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Hawaii

Hawaii’s wage base is estimated to increase from $51,600 to $55,800 in 2023.

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Idaho

SUTA rates for employers in Idaho will range from 0.306% to 5.4% in 2023 and the wage base is estimated to increase to $50,000.

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Illinois

Effective 2023, a surcharge of 0.325% will be added to some employer unemployment contribution rates. The taxable wage base will remain at $12,960.

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Indiana

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

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Iowa

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

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Kansas

No tax changes were reported in Kansas, with the wage base holding at $14,000.

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Kentucky

Unemployment tax rates will range from 0.30% to 9.00%. The taxable wage base will increase from $10,800 to $11,100.

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Louisiana

No tax changes were reported in Louisiana, with the wage base holding at $7,700.

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Maine

No tax changes were reported in Maine, with the wage base holding at $12,000.

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Maryland

Unemployment tax rates will range from 1.0% to 10.5%, with the wage base holding at $8,500.

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Massachusetts

No tax changes were reported in Massachusetts, with the wage base holding at $15,000.

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Michigan

No changes were reported in Michigan, with the wage base holding at $9,500.

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Minnesota

Minnesota’s base rate will be 0.10% in 2023, while the additional assessment and special assessment are both set at 0%. Effective January 1, 2023, the wage base will likely increase to $41,000.

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Mississippi

No changes were reported in Mississippi, with the wage base holding at $14,000.

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Missouri

2023 rates could range from 0.0% to 6.0%, not including maximum rate surcharge and/or contribution rate adjustment. The wage base will decrease from $11,000 to $10,500 in 2023.

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Montana

Effective January 1, 2023, the wage base is estimated to increase to $40,900.

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Nebraska

No changes were reported in Nebraska, with the wage base holding at $24,000.

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Nevada

Effective January 1, 2023, the wage base is scheduled to increase to $40,100.

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New Hampshire

No 2023 SUTA rate changes were reported in New Hampshire. The wage base will remain $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 will increase to $41,100. New Jersey’s unemployment tax rate for employees will be 0.425%, unchanged from 2022.

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New Mexico

In New Mexico, the taxable wage base is expected to rise to $30,400, up from $28,700.

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New York

New York’s unemployment wage base has increased to $12,300 and is scheduled to increase every year through 2026.

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North Carolina

Effective January 1, 2023, the wage base will likely increase to $30,000.

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North Dakota

No changes were reported in North Dakota, with the wage base holding at $38,400

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Ohio

SUTA rates in Ohio will range from 0.3% to 9.8% in 2023, with the taxable wage base holding at $9,000.

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Oklahoma

Effective January 1, 2023, the wage base is scheduled to increase to $25,700.

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Oregon

Effective January 1, 2023, the wage base will likely increase to $51,600.

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Pennsylvania

No changes were reported in Pennsylvania, with the wage base holding at $10,000.

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Rhode Island

No tax changes were reported in Rhode Island, with the wage base holding at $24,600 to $26,100.

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South Carolina

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

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South Dakota

Unemployment tax rates will range from 0% to 9.3%, with the wage base holding at $15,000.

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Tennessee

SUTA rates will range from 0.01% to 10.0%, with the wage base holding at $7,000.

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Texas

No tax changes were reported in Texas, with the wage base holding at $9,000.

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Utah

Effective January 1, 2023, the wage base will likely increase to $44,300.

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Vermont

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

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Virginia

No changes were reported in Virginia, with the wage base holding at $8,000.

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Washington

Unemployment tax rates will range from 0.05% to 12% and the maximum social tax will be 0.70%. Washington’s 2023 wage base is set at $67,600.

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West Virginia

No changes were reported in West Virginia, with the wage base holding at $9,000.

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Wisconsin

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

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Wyoming

Effective January 1, 2023, the wage base will increase to $29,100.

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Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.

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