SUTA Tax Rate 2022 and Other Unemployment Cost Changes

SUTA Tax Rate 2022 and Other Unemployment Cost Changes

suta tax rate 2022
state unemployment tax
state unemployment tax rates 2022

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SUTA (State Unemployment Tax) changes were introduced throughout the country in 2022 (and some have already been announced for 2023). Some states changed their overall SUTA tax rate 2022 and others changed the taxable wage base. Many states have seen changes to both. Nonprofit, governmental and tribal entities should take a closer look at what these changes could mean for their budget.

We’ll review what you need to know about the current rates and any changes to help your business be prepared for what lies ahead. While for-profit entities are bound by these changes and requirements, nonprofit, governmental and tribal entities have options.

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Note: 501(c)(3) nonprofit, governmental and Native American tribal entities are exempt from Federal Unemployment Taxes (FUTA).

Click here for a listing of all State Unemployment Insurance Office websites.

Alabama

No changes were reported for Alabama, with the wage base remaining steady at $8,000 and the minimum-maximum weekly benefit amount at $45-$275.

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Alaska

Alaska’s taxable wage base has been increased to $45,200 (up from $43,600) for all employers. Minimum and maximum rates held at 1.0% to 5.4%. Effective January 1, 2023, the unemployment wage base will likely increase to $46,800.

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Arizona

Unemployment tax rates have changed slightly in Arizona, with the range increasing to 0.08%-20.93%. The maximum duration of benefits has been reduced from 26 to 24 weeks anytime the state’s unemployment rate drops below 5%. As of this writing, the 24-week maximum is in effect. Effective July 1, 2022 the max WBA on claims will increase from $240 to $320 and beginning January 1, 2024, the 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 and rates ranging from 0.3%-14.2%.

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California

No changes were reported in California, with the wage base holding at $7,000 and the rates ranging from 1.6% to 6.2%.

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Colorado

Massive changes have been implemented in Colorado. The overall unemployment tax has increased 30%, with tax rates ranging between 0.75% and 10.39%. The wage base also went up from $13,600 to $17,000 and is set to increase to $20,400 in 2023, $23,800 in 2024, $27,200 in 2025, and $30,600 in 2026. The maximum weekly benefit amount also increased from $700 to $742.

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Connecticut

No changes were reported in Connecticut, with the wage base holding at $15,000 and rates ranging from 1.9% to 6.8%, however the maximum weekly benefit amounts increased from $685-$760 to $703-$778. 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

Delaware’s taxable wage base changed to $14,500. Minimum and maximum rates held at 0.3% to 8.2%.

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Florida

No changes were reported in Florida, with the wage base holding at $7,000 and rates ranging from 0.1% to 5.4%.

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Georgia

No changes were reported in Georgia, with the wage base holding at $9,500 and rates ranging from 0.04% to 8.1%.

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Hawaii

Hawaii reported changes to their maximum weekly benefit amount as well as their wage base. The new maximum was set to $695 (up from $639) while the wage base has changed to $51,600 (up from $47,400). Effective January 1, 2023 the wage base will likely increase to $55,800. Hawaii’s 2023 unemployment tax rates will increase to a range of 1.8% to 6.4% (0.2% to 5.8% in 2022).

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Idaho

Idaho changed their wage base as well as their minimum rate, moving to a wage base of $46,500 and a minimum rate of 0.252%. The weekly benefit amount increased from $463 per week in 2021 to $499. Effective January 1, 2023, the wage base will likely increase to $50,000.

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Illinois

Unemployment tax has gone up in Illinois with a range of 0.725% to 7.625%, which is an increase over the previous 0.675% to 6.875%. Effective 2023, a surcharge of 0.325% will be added to some employer contribution rates. Maximum weekly benefit amounts have also increased, with the new maximum set to range from $542 to $742 (up from $505-$697).

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Indiana

No changes were reported in Indiana, with the wage base holding at $9,500 and rates ranging from 0.5% to 7.4%.

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Iowa

Iowa’s taxable wage base increased to $34,800. Tax rates have not changed, but the maximum weekly benefit amounts increased from $531-$651 to $551-$676. Effective January 1, 2023, the unemployment taxable wage base will increase to $36,100. 2023 unemployment tax rates will range from 0% to 7%.

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Kansas

No tax changes were reported in Kansas, with the wage base holding at $14,000 and rates ranging from 0.2% to 7.6%. For all new claims filed on or after July 3, 2022, the minimum weekly benefit amount increases from $135 to $140 and the maximum WBA increases from $540 to $560.

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Kentucky

Kentucky’s wage base changed to $10,800. 2022 SUI tax rates from 0.5%-9.5%. The weekly benefit amount increased to $626.

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Louisiana

A very slight increase took place in Louisiana, fueled by the change in individual rate assignments. This has resulted in a 1% increase for employers that are positive balanced and an 11% increase for those who are considered negative balanced. While the wage base held at $7,700 and the minimum and maximum rates stayed at 0.09% to 6.2%. With new claims filed on or after August 1, 2022, the minimum weekly benefit amount will increase from $10 to $35. The maximum weekly benefit amount will change to $275 (up from $247) in 2023.

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Maine

Maine reported changes to their minimum and maximum rates, with new numbers at 0.74% to 6.37%. The wage base held at $12,000. With new claims filed on or after June 1, 2022, the minimum weekly benefit amount range will increase from $89-$133 to $94-$164, and the maximum WBA range increases from $511-$766 to $538-$941.

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Maryland

State moved to Rate Table C, with the wage base holding at $8,500 and rates ranging from 1.0% to 10.5%.

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Massachusetts

Massachusetts saw significant changes with unemployment tax rates ranging between 1.114% and 16.222%. The Solvency Assessment decreased from 1.12% to 0.59%, but the COVID-19 Recovery Assessment increased from 10.5% to 12.5% which will have varying effects on the rates. The maximum weekly benefit amounts increased from $974-$1,461 to $1,015-$1,522.

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Michigan

No changes were reported in Michigan, with the wage base holding at $9,500 and rates ranging from 0.06% to 10.3%.

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Minnesota

2022 tax rates include a 0.10% base rate. The taxable wage base increased from $35,000 to $38,000, while the maximum weekly benefit amount also increased from $820 to $857. Effective January 1, 2023, the wage base will likely increase to $41,000.

Mississippi

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

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Missouri

No changes were reported in Missouri, with the wage base holding at $11,000 and rates ranging from 0.0% to 6.75%.

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Montana

Montana increased the taxable wage base to $38,100. Tax rates remain at 0.13% to 6.3%. The maximum weekly benefit amount increased from $618 to $657. Effective January 1, 2023, the wage base is scheduled to increase to $40,500.

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Nebraska

No changes were reported in Nebraska, with the wage base holding at $24,000 and rates ranging from 0.0% to 5.4%.

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Nevada

Nevada’s taxable wage base changed to $36,600, an increase of 9.6%.  The weekly benefit amount increased to $562. The rates held steady, however, at 0.3% to 5.4%. Effective January 1, 2023, the wage base is scheduled to increase to $40,100.

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New Hampshire

In New Hampshire tax rate ranges have decreased, coming in at 0.1% to 8.5% instead of 0.6% to 9.0%. The wage base held at $14,000 and is expected to remain the same for 2023.

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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%. The 2023 taxable wage base will increase to $41,100.

New Mexico

In New Mexico the taxable wage base has risen to $28,700, an increase of 6.3%. The rates held at 0.33% to 6.4%. Effective January 1, 2023, the wage base will likely increase to $30,400.

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New York

New York’s unemployment wage base has increased to $12,000, up 1.7%. Beginning in July 2022, employers who make unemployment insurance contributions will be notified of the 2022 Interest Assessment Surcharge rate (.23%) along with information about how to pay this annual charge (about $27.60 per employee). The wage base is scheduled to increase through 2026 ($12,300 in 2023).

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North Carolina

The unemployment wage base has increased to $28,000, up 7.7%. Rates held at 0.06% to 5.76%. Effective January 1, 2023, the wage base will likely increase to $30,000.

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North Dakota

The unemployment wage base increased to $38,400 while the rates remained the same at 0.08% to 9.69%. The maximum weekly benefit amount increased from $657 to $673.

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Ohio

Ohio increased their top tier unemployment rate by quite a bit, from 4.1% all the way up to 10.2%. This means that their new range is 0.8% to 10.2%. The maximum weekly benefit amounts increased from $498-$672 to $530-$715. They kept the wage base steady, however, at $9,000.

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Oklahoma

Oklahoma’s unemployment wage base has increased to $24,800, an increase of 3.3%. The maximum rate also changed to 7.5%, creating a range of 0.3% to 7.5%. Effective January 1, 2023, the wage base is scheduled to increase to $25,700.

Oregon

Contrary to most states, Oregon decreased their unemployment tax rate. Rates are 0.3% lower than they were in 2021, though still higher than 2020. They now range between 0.9% and 5.4%. However, the taxable wage base went up yet again, up 8.9% to $47,700. The maximum weekly benefit amount also increased from $733 to $783. Effective January 1, 2023, the wage base will likely increase to $51,600.

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Pennsylvania

Pennsylvania adjusted their maximum weekly benefit amounts to a range of $594-$602 (up from $573-$581) while everything else remained the same. The wage base is $10,000, rates range between 1.2905% and 9.9333%.

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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 and rates ranging from 1.2% to 9.8%, however the maximum weekly benefit amounts increased from $661-$826 to $680-$850.

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South Carolina

No changes were reported in South Carolina, with the wage base holding at $14,000 and rates ranging from 0.06% to 5.46%.

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South Dakota

No tax changes were reported in South Dakota, with the wage base holding at $15,000 and rates ranging from 0.0% to 9.85%, however the maximum weekly benefit amount increased from $466 to $487.

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Tennessee

Tennessee’s July 2022-June 2023 unemployment employer tax rates were issued on August 24, 2022. They now range from 0.1% to 10.00%.

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Texas

No tax changes were reported in Texas, with the wage base holding at $9,000 and rates ranging from 0.31% to 6.31%. The maximum weekly benefit amount increased from $549 to $563, while the minimum weekly benefit amount increased to $72.

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Utah

Utah increased their taxable wage base by nearly 7% to $41,600. Tax rates were set to 0.3% to 7.3% overall. Effective January 1, 2023, the wage base will likely increase to $44,300.

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Vermont

Vermont increased their wage base by 10% over 2021’s base to $15,500. Also, tax rates increased to 0.8% to 6.5% and are based on the fiscal year. The maximum weekly benefit amount increased from $583 to $668. Fiscal year 2023 are expected to decrease. Effective January 1, 2023, the 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 and rates ranging from 0.33% to 6.43%.

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Washington

Washington increased their taxable wage base by 10.6%, to $62,500 (the highest you’ll find anywhere in the country). They also increased the maximum weekly benefit amount from $929 to $999. Effective Jan. 1, 2023, the wage base is to be $67,600.

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West Virginia

West Virginia’s wage base and rates held at $12,000 and 1.5% to 8.5%. The weekly benefit amount increased significantly from $424 to $631.

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Wisconsin

No changes were reported in Wisconsin, with the wage base holding at $14,000 and rates ranging from 0% to 12%.

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Wyoming

The unemployment wage base increased to $27,700 and the tax rate range changed to 0% to 10%. The minimum weekly benefit amount increased form $38 to $40, while the maximum increased from $526 to $560. Effective January 1, 2023, the wage base will increase to $29,100.

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Testimonials

We’ve been a member of First Nonprofit’s Unemployment Savings Program since 2011 and highly recommend joining. The program is terrific and allows us to earn interest on our own funds while still meeting the state’s requirements on unemployment payments. In addition, the staff are great and always helpful sorting out any questions we may have. Thank you all!

NC Conservation Network, Raleigh, NC

CCSCT was approached by First NonProfit to discuss its Unemployment Savings Program and ways the program could significantly reduce the amount of unemployment taxes we were paying. At the time, our agency was paying approximately $80,000 per year. First NonProfit conducted an analysis to determine if making the switch would be in our best interest, and it clearly was based on our circumstances. The first year on the program, CCSCT saw a 70% reduction in its unemployment costs and each year, continues to experience further reductions as a result of having minimal claims. Some additional benefits of the program including having a fixed annual cost, an interest-baring reserve account, professional unemployment claims management and representation at all unemployment hearings. This has been one of the best decisions we have made.

Community Council of South Central Texas, Inc., Seguin, TX

We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit.  We didn’t have an HR department and needed expertise in the event that an unemployment claim was made.  We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process.  They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost.  We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services.  I highly recommend them to every nonprofit I come into contact with!

CROSSPURPOSE, Denver, CO

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