The below applies to many employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes – high or low.Many nonprofits could save as much as 30 percent or more on their unemployment costs by opting out of the unemployment insurance tax system – an advantage provided to them by the IRS. Doing so affords nonprofits unique avenues that allow them to strategically handle unemployment risk in ways that for-profits can only dream about.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages. Learn more about unemployment in your state here.
This time of year many states begin to prepare employers for any changes in the unemployment insurance tax structures. Changes can be made to the tax rates themselves and/or the taxable wage base. Below is a list of states that have announced changes to their state unemployment insurance taxes for 2022.
It’s important to remember that unemployment tax rates are assessed on employers based on an experience rating – a measure of how much their separated employers use unemployment benefits. Even if unemployment tax rates did not change in your state for 2022, your unique employer tax rate may have.
Alaska
Alaska has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 4.8% to $45,700 for all employers. More Alaska unemployment insurance tax details.
Arizona
2022 rates will range from 0.08% – 20.93% as compared to 0.08 to 20.60% in 2021. On average, this will create a +2% tax increase (per employee) for any employers assigned a rate above the minimum rate.The taxable wage base remains $7,000 for 2022. More Arizona unemployment insurance tax details.
Colorado
Colorado for 2022 has increased unemployment taxes by more than 30% by moving rates to the state’s highest rate schedule. Tax rates are to range from 0.75% to 10.39%. The wage base is to be $17,000, up from $13,600 in 2021. More Colorado unemployment insurance tax details.
Idaho
Idaho’s unemployment tax rates are to increase by 3% for 2022. Effective Jan. 1, 2022, tax rates are to range from 0.252% to 2.352%. More Idaho unemployment insurance tax details.
Illinois
Illinois unemployment tax rates are to increase in 2022. Effective Jan. 1, 2022, unemployment tax rates for experienced employers are to range from 0.725% to 7.625%. For comparison, tax rates for 2021 ranged from 0.675% to 6.875%. More Illinois unemployment insurance tax details.
Iowa
Iowa’s unemployment tax rates are to remain the same in 2022. The state taxable wage base, however, has increased 7.4% to $34,800 for all employers. More Iowa unemployment insurance tax details.
Kentucky
Kentucky’s unemployment tax rates will increase as much as 70% for some employers. The taxable wage base has increased 2.8% to $11,100. For 2022, tax rates are to range from 0.5% to 9.5%. More Kentucky unemployment insurance tax details.
Louisiana
The individual rate assignments per bracket have changed creating a slight tax increase of approximately 1% for positive balanced employers, and a substantial 11% increase (on average) for negative balanced employers. More Louisiana unemployment insurance tax details.
Minnesota
Minnesota’s unemployment tax costs are to increase in 2022 by 2.9% because of higher tax rates and supplementary assessments. For 2022, tax rates are to range from 0.0% to 8.9%. The taxable wage base for 2022 is $38,000 up from $35,000 in 2021. More Minnesota unemployment insurance tax details.
Montana
Montana has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 7.9% to $38,100 for all employers. More Montana unemployment insurance tax details.
Nevada
Nevada has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 9.6% to $36,600 for all employers. More Nevada unemployment insurance tax details.
New Hampshire
New Hampshire is reducing its unemployment tax rates by as much as 83% in 2022 for some employers. The new tax rates for 2022 range from 0.1% to 8.5% down from the 2021 rates that ranged from 0.6% to 9.0%. More New Hampshire unemployment insurance tax details.
New Jersey
New Jersey is increasing its unemployment tax rates by as much as 37% for some employers and wage base by 9.9% for all employers in 2022. The wage base increases from $36,200 to $39,800. The new 2022 tax rates in New Jersey will range from 0.5% to 5.8%. More New Jersey unemployment insurance tax details.
New Mexico
New Mexico has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 6.3% to $28,700 for all employers. More New Mexico unemployment insurance tax details.
New York
New York has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 1.7% to $12,000 for all employers. More New York unemployment insurance tax details.
North Carolina
North Carolina has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 7.7% to $28,000 for all employers. More North Carolina unemployment insurance tax details.
Ohio
Ohio has increased its top unemployment tax rate by 4.1% to 10.2%. For 2022, Ohio unemployment tax rates will range from 0.8% to 10.2% with no change to the taxable wage base. More Ohio unemployment insurance tax details.
Oklahoma
Oklahoma has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 3.3% to $24,800 for all employers. More Oklahoma unemployment insurance tax details.
Oregon
Oregon is lowering its lowest unemployment tax rate for 2022 by 0.3%. Oregon unemployment tax rates will range from 0.9% to 5.4% in 2022. These rates are still higher than they were in 2020. The Oregon taxable wage base is increasing, however, for the third straight year to $47,700 – an 8.9% increase over 2021. More Oregon unemployment insurance tax details.
Rhode Island
Rhode Island has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 2.4% to $25,200 for all employers. More Rhode Island unemployment insurance tax details.
Utah
Utah has increased its taxable wage base and unemployment tax rates for 2022. The new tax rates will range from 0.3% to 7.3%. The taxable wage base is increasing 6.9% to $41,600 for all employers. More Utah unemployment insurance tax details.
Vermont
Vermont’s unemployment-taxable wage base is to rise 10% for 2022 to $15,500. Vermont’s unemployment tax rates are determined on a fiscal-fear basis. Effective from July 1, 2021, to June 30, 2022, unemployment tax rates increased over the previous fiscal year and range from 0.8% to 6.5%. More Vermont unemployment insurance tax details.
Washington
Washington’s unemployment-taxable wage base is to rise 10.6% for 2022 to $62,500 – the highest in the country. The lowest unemployment tax rate is also increasing to 0.33%; up from 0.23%. The top unemployment tax rate remains at 6.03%. More Washington unemployment insurance tax details.
Wyoming
Wyoming has no increase in unemployment tax rates for 2022 but has increased the taxable wage base by 3.3% to $28,200 for all employers. More Wyoming unemployment insurance tax details.
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501(c) Services, a 100% employee-owned organization, has 40 years of experience in providing full-service alternatives to state-run unemployment insurance programs and provides services to over 3,000 nonprofits nationally. We administer 501(c) Agencies Trust, which offers a comprehensive suite of risk management services and multiple stop-loss protection solutions for nonprofit members. We also operate Nonprofit HR Services – a confidential resource available to help walk nonprofits through difficult personnel issues.
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