The Covid-19 pandemic caused national unemployment in the US to rise to 14.7%, leading to many states borrowing from the federal unemployment account to keep up with benefit claims.
Since then, many states have made changes to their unemployment programs to replenish trust funds while minimizing the impact on employers. Some states have been subject to Federal Unemployment Tax Act credit reductions, which can increase federal unemployment tax costs for employers. A better understanding of unemployment tax calculations at both the federal and state levels can help employers and payroll professionals comply with changing requirements more effectively.
This strategic white paper explores federal and state unemployment tax calculations and how the Covid-19 pandemic impacted unemployment insurance programs, offering appendices that cover:
- Taxable wage base comparison chart
- Credit reductions on federal unemployment tax
- Actions to limit credit reductions
- Tax cost reduction strategies for employers
Download your complimentary copy now.