< previous | next >
DOL issues 2007 annual UC certifications of states under FUTA. The Secretary of Labor has signed the annual 12-month certifications under the Federal Unemployment Tax Act that enable employers who make contributions to state unemployment funds to obtain certain credits against their liability for federal unemployment tax. All 50 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands, have received certifications for the maximum additional credit allowable based on the 12-month period ending on October 31, 2007.
President signs energy bill with FUTA surcharge extension. President Bush has signed H.R. 6, the Energy Independence and Security Act of 2007 (P.L. 110-140). The bill extends the 0.2% FUTA surcharge for one year through 2008. Therefore, the total FUTA tax rate will be 6.2% for 2008.
Alabama. Since the trust fund balance was at least 70% of the desired level at the end of 2007, Schedule C of the tax table will continue to apply for calendar year 2008. In addition, the Shared Cost Assessment for 2008 will be 0.2%. Note that all experience-rated employers (except new employers and employers assigned a rate of at least 5.4% but no greater than 5.45%) are required to pay the 0.06% employment security administrative (ESA) enhancement assessment under Schedule C. Accordingly, rates for 2008 will range from 0.64% to 6.30%.
Alaska. Contribution rates for 2008 range from 1.0% to 5.4% for eligible employers, based on payroll decline experience. For 2008, the average benefit cost rate used to determine the rates is 0.019979, the trust fund reserve rate is 0.33014, and there is a -0.001% trust fund solvency adjustment. The employee tax rate for 2008 is 0.50%. For 2008, the taxable wage base in Alaska will increase to $31,300. This is $1,200 higher than the taxable wage base of $30,100 that was applicable in 2007.
Arkansas. For 2008, basic contribution rates in Arkansas will be increased by a 0.7% stabilization tax and will range from 0.8% to 10.7%. There is no extended benefits tax or advance interest tax for 2008. In addition, new employers pay 3.6% in 2008, including the stabilization tax.
California. The UI rate schedule in effect for 2008 will continue to be Schedule F+. This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule F+ provides for UI contribution rates ranging from 1.5% to 6.2%. The taxable wage base for 2008 for UI purposes remains at $7,000. The new employer rate will be 3.4% and the Employment Training Tax rate remains at 0.1% for 2008. Note that the voluntary UI payment program is not in effect in 2008. For 2008, the state disability insurance withholding rate is 0.8%. The SDI taxable wage base for 2008 is $86,698.
California EDD grants extensions to wildfire, landslide victims. Employers directly affected by the Southern California Wildfires may request up to a 60-day extension of time from the Employment Development Department (EDD) to file their state payroll reports and deposit state payroll taxes without penalty or interest. This extension is applicable only to the third and fourth quarters of 2007. Written requests for extension must be received with a postmark date of December 20, 2007, or earlier. The State Board of Equalization (SBE) and the Franchise Tax Board (FTB) previously had granted filing extensions and other assistance to wildfire victims. In addition, employers in San Diego County who were directly affected by damage resulting from the landslide in the Mt. Soledad area may request similar relief. This extension also is applicable only to the third and fourth quarter of 2007 and is subject to the same request deadline.
Colorado. For 2008, the "450 million plus" rate schedule of the tax table applies, the fund balance having been between those figures as of July 1, 2007. Rates range from 0.00% to 7.60%, with unrated employers paying 1.7%. In addition, the surcharge for benefits not effectively charged remains at 0.22%. Note that the solvency tax surcharge remains in effect for 2008 as well. The tax varies by employer but is charged against all ratable employer accounts with less than 20% of excess, excluding government agencies, political subdivisions and nonprofit organizations that are reimbursable employers. Employers with an increased percent of excess pay at a lower rate while those with a decreased percent of excess pay at a higher one. The tax will increase each year for as long as it is required but may not go past the limit set by law in 1990.
Colorado has amended its Employment Security Act as follows: Determination of tax liability review. Any employer who wishes to appeal a determination of liability for taxes may file a written notice of appeal with the Division within 20, formerly 15, calendar days after the date the notice of determination is mailed.
Connecticut. Effective October 7, 2007, the maximum weekly benefit amount in Connecticut is $501.
Delaware. The Delaware taxable wage base will be increased from $8,500 to $10,500 effective January 1, 2008. The taxable wage base has not been increased in Delaware since January 1, 1987.
Florida. For 2008, the minimum rate is 0.10% and the maximum rate is 5.4%, except that employers participating in the short-time compensation program will be subject to a maximum rate of 6.4%. New employers pay 2.7% in 2008. The noncharge adjustment ratio is .0025, the excess payment ratio is .0012, the gross benefit ratio is .0105, the multiplier is .3524, and the final adjustment ratio is .0009. Note that the fund balance adjustment factor is not required in 2008 because the balance of the fund was greater than 3.7% of the state's one taxable payroll.
The Florida Unemployment Insurance Act has been amended as follows: Penalty for delinquent reports. The agency or its service provider may assess penalties only through the date of the issuance of the final assessment notice. However, additional penalties accrue if the delinquent report is subsequently filed.
Hawaii reduces taxable wage base by $22,300 for 2008-2010 - For calendar years 2008, 2009, and 2010 only, the term wages does not include remuneration in excess of $13,000 paid with respect to employment to an individual by an employer so long as the balance of the unemployment trust fund does not fall below the adequate reserve fund as specified by statute. This amount is a decrease from the 2007 taxable wage base amount of $35,300.
Idaho. For 2008, the taxable wage base in Idaho will increase to $32,200. This amount is $2,000 higher than the 2007 taxable wage base of $30,200.
Iowa. The taxable wage base in Iowa for 2008 will be $22,800. This is an increase of $800 over the 2007 taxable wage base amount of $22,000.
Kansas. The regulations governing the Kansas Employment Security Law have been amended as follows:
Definitions. For purposes of determining eligibility for waiver of the one-week waiting period, the term "terminating business operations within this state" means the cessation or ending of activities that produce goods or provide services by an employer within the state of Kansas where the employer has not provided each employee displaced by the action an opportunity to transfer to another of the employer's business operations in Kansas or the employer has no other business operation in Kansas. This term also includes the closing of a plant, store or worksite; the destruction of the business due to natural disaster or civil disruption; and sale of the plant or store to another entity if the new owner does not keep all the employees of the previous owner.
"Declaring bankruptcy" means the filing by an employer for any class of bankruptcy under the federal bankruptcy laws. The "WARN Act" refers to the Worker Adjustment and Retraining Notification Act, which requires an employer to give its employees at least 60 days' advance notice of a plant closing or mass layoff if an employment site will be shut down, resulting in any of the following: (A) A facility or operating unit is shut down for more than six months; (B) Fifty or more employees lose their jobs during any 30-day period at a single site of employment; or (C) A layoff of six months or longer meets one of the following conditions: (i) 500 or more employees are affected or (ii) 50 to 499 employees lose their jobs if those employees comprise at least 33% of the active workforce at a single employment site.
Louisiana. The taxable wage base in Louisiana remains at $7,000 for 2008.
The Louisiana Employment Security Act has been amended as follows:
Electronic filing of contribution and wage reports. The Secretary may require the following employers to file both their contribution and wage reports on magnetic media or by other electronic means at the following times: For contribution and wage reports due after January 31, 2008, those employers with 250 or more employees. Similarly, for reports due after January 31, 2010, those employers with 250 or more employees. For contribution and wage reports due after January 31, 2012, those employers with 150 or more employees. For contribution and wage reports due after January 31, 2014, those employers with fewer than 100 employees. The reporting requirements may be waived by the Secretary for an employer if hardship is shown.
Notice of benefits charged. By October 14 of each year, the Administrator will establish the amount to be collected for the Incumbent Worker Training Account and will notify each employer, no later than December 31 of each year, of its rate of contribution for the forthcoming calendar year as determined for any relevant experience-rating year. This determination is conclusive and binding upon an employer unless within 20 days after the mailing of notice to the last known address, or in the absence of mailing within 15 days after the delivery of such notice, the employer files an application for review and redetermination.
If the Administrator grants review, the employer will be promptly notified and granted an opportunity for a fair hearing, but no employer will have standing in any proceeding involving its rate of contribution or contribution liability to contest the chargeability of any benefits to its experience-rating record in cases where it has previously been notified and had an opportunity for hearing, review and appeal and not responded.
Massachusetts. Effective October 1, 2007, the maximum weekly benefit amount in Massachusetts is $600.
Minnesota. The taxable wage base in Minnesota will increase to $25,000 for 2008, up $1,000 over the 2007 taxable wage base of $24,000.
Missouri. For 2008, the taxable wage base in Missouri will increase to $12,000. This is $1,000 higher than the taxable wage base of $11,000 that has been applicable since 2005.
Montana. For 2008, the taxable wage base in Montana will increase to $23,800. This is $1,100 higher than the taxable wage base of $22,700 that was applicable for 2007.