Upcoming Unemployment Wage Base Changes: Why These Changes matter!

October 20, 2015

Upcoming Unemployment Wage Base Changes: Why These Changes matter!

A number of states have recently announced changes to their unemployment taxable wage bases that will take effect in 2016. (See chart below)

What is a state unemployment taxable wage base?

This is the maximum amount on which an employer must pay to unemployment taxes for each employee. For example, an employer in Kansas must pay unemployment taxes on the first $14,000 an employee earns throughout the 2016 calendar year.

Why is this information important?

An increase in the taxable wage base can also mean an increase in unemployment tax cost per employee. For example, if an employer in Washington had a 1.0% unemployment rate in 2015, their cost per employee would be $421 ($42,100 x 1.0%). In 2016, that cost would increase to $440, should their tax rate remain at 1.0% ($44,000 x 1.0%).

First Nonprofit Group offers several options to help nonprofit employers avoid these increases. Contact us today to request a free, no obligation savings quote!




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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

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. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.


Thresholds, 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

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.

Hugh Parry, Retired President of Prevent Blindness America