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SUTA TAXABLE WAGE BASE CHANGES

PEOs filing their first SUTA returns for 2016 will notice some changes. As a result of several states changing their taxable wage base, the related tax liabilities may be different than expected. In addition to changing the taxable wage base, several states also reduced and/or eliminated some tax surcharges. There is a total of 24 states that increased the taxable wages base for the first quarter of 2016, and two states that reduced their wage base. In addition to the taxable wage base changes, multiple states are now using different rate schedules that modify the minimum unemployment tax rate for that particular state. PEOs should also keep in mind that some states also announced changes to their taxable wage bases and surcharges, but the changes do not go into effect until later this year. Please see below for a list of changes.

States with Taxable Wage Base Increases
Alaska: Increased from $38,700 to $39,700.	North Carolina: Increased from $21,700 to $22,300.
Colorado: Increased from $11,800 to $12,200.	North Dakota: Increased from $35,600 to $37,200.
Hawaii: Increased from $40,900 to $42,200.	Oklahoma: Increased from $17,000 to $17,500.
Idaho: Increased from $36,000 to $37,200.	Oregon: Increased from $35,700 to $36,900.
Iowa: Increased from $27,300 to $28,300.	Pennsylvania: Increased from $9,000 to $9,500.
Kansas: Increased from $12,000 to $14,000.	Rhode Island: Increased from $21,200 to $22,000 (from $22,700 to $23,500 for employers in the highest unemployment tax rate bracket).
Kentucky: Increased from $9,900 to $10,200.	Utah: Increased from $31,300 to $32,200.
Minnesota: Increased from $30,000 to $31,000.	Vermont: Increased from $16,400 to $16,800.
Montana: Increased from $29,500 to $30,500.	Virgin Islands: Increased from $22,900 to $23,000.
Nevada: Increased from $27,800 to $28,200.	Washington: Increased from $42,100 to $44,000.
New Jersey: Increased from $32,000 to $32,600.	Wyoming: Increased from $24,700 to $25,500.
New Mexico: Increased from $23,400 to $24,100.
New York: Increased from $10,500 to $10,700.

States with Taxable Wage Base Decreases

Michigan: The taxable wage base decreased for most non-delinquent, contributing employers from $9,500 to $9,000, beginning in the third quarter of 2015

Tennessee: decreased from $9,000 to $8,000 in 2016.

States with Surcharge Changes

Alabama: The shared cost assessment is not in effect in 2016 (0.3% in 2015).

Arizona: Employers no longer have to pay the job training tax, which was computed at 1% of taxable wages.

North Carolina: Employers no longer have to pay a 20% surcharge on their unemployment tax liability

Virginia: The pool cost charge has been reduced from 0.14% to 0.07%. Employers do not have to pay the fund builder tax in 2016

For more information or questions on this topic, please contact a member of the firm's National PEO Practice in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040 or visit us on the web at www.uhy-us.com.

Published by UHY LLP News.

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