ETS Tax Intelligence: 2016 SUI Wage Bases
A “taxable wage base” is the annual amount of wages paid by an employer to an employee that are subject to state unemployment insurance (“SUI”) taxation. SUI taxes are primarily employer-paid taxes, and the amount of wages subject to taxation varies by state. Employers must consider wage base changes as they budget for 2016 employment tax costs.
It is important for employers to closely monitor SUI wage bases, as many states continue to increase taxable wage bases in an attempt to restore SUI trust fund solvencies. The table below contains the most recent information available on wage base levels for 2016:
Because of the state SUI trust fund insolvency challenges, an increase in a taxable wage base is possible for any state. There are still five states that have yet to notify employers of their 2016 taxable wage bases; some states even finalize their 2016 taxable wage base well after the start of the first quarter. Employers must monitor these changes to make certain the proper amount of tax is accrued based on the current year’s taxable wage base. For more information, please contact Pete Krieshok at (314) 214-7325, or via email at pete.krieshok@Equifax.com. You can also visit our corporate blog for information on other employment tax matters that might impact your organization.
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