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 40% 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 2024.
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 2024, your unique employer tax rate may have.
Alaska
The taxable wage base in Alaska will increase to $49,700 in 2024, up from $47,100 in 2023. Click here for more information.
Arizona
Colorado
The taxable wage base, which dictates the cap on the amount of an employee’s earnings that are subject to SUTA taxes, is set to increase in Colorado to $25,000 in 2024. This is a notable increment of $3,800 from its 2023 level. (Note: The 2024 increase is part of a mandated four-year wage base increase that will end at $30,600 in 2026.) Click here for more information.
Connecticut
The taxable wage base in Connecticut increases from $15,000 to $25,000 and is subsequently indexed annually due to inflation. The state’s minimum charged rate is reduced from 0.5% to 0.1%. The state’s maximum charged rate increases from 5.4% to 10.0%. Click here for more information.
Hawai’i
Idaho
The taxable wage base in Idaho will increase 6.8% in 2024 to $53,500, up from $49,900 in 2023. Click here for more information.
Illinois
The taxable wage base will increase in Illinois to $13,590, up 2.40% from $13,271 in 2023.
Iowa
In Iowa the taxable wage base is increasing to $38,200 in 2024, a 5.8% change. Click here for more information.
Kansas
Kentucky
The taxable wage base in Kentucky is increasing $300 in 2024 to $11,400. Click here for more information.
Louisiana
2024 tax rates for Louisiana employers will increase for most ratio categories. Rates for 2024 will range from 0.09% to 1.96% for positive rated employers, while negative rated employer rates will range from 2.24% to 6.20%. The new employer rate remains based on the average applicable industry rate within the state. Click here for more information.
Maryland
After being taxed under Table C in 2023, Maryland employers will see tax rates assigned based on the lowest available rate table, Table A, for 2024. Rates under Table A will range from 0.30% to 7.50%, with the new employer rate at 2.60%. The rate for new construction employers headquartered in a state other than Maryland will be 3.3%. The standard rate, which is assigned to employers who are eligible for an earned rate but have no taxable wages due to failure to file quarterly wage reports, will be 7.50%. Click here for more information.
Minnesota
For 2024, the taxable wage base in Minnesota will increase 5.0% to $42,000. Click here for more information.
Missouri
In 2024, the taxable wage base in Missouri will decrease to $10,000, down from $10,500 in 2023. Click here for more information.
Montana
The taxable wage base in Montana will increase 6.2% in 2024 to $43,000, up from $40,500 in 2023. Click here for more information.
Nevada
The taxable wage base for Nevada will increase in 2024 to $40,600. This is an increase of $500 per employee over the 2023 taxable wage base of $40,100. Tax rates range from 0.25% to 3.55% for positive-rated experienced employers and from 3.55% to 5.4% for negative-rated experienced employers, according to the update. The tax rate for new employers is 2.95%. Most employers also must pay a 0.5% career enhancement program tax on covered wages, under state law. Employers are exempt from the career enhancement program tax if they are assigned the maximum 5.4% rate or they are nonprofit organizations that have elected to make reimbursements in lieu of contributions. Click here for more information.
New Jersey
New Jersey announced an increase in rate tables for the July 1, 2023 to June 30, 2024 timeframe, moving from Table D to Table E. Experience rates will now range from 1.2% to 4.3% for positive ratio employers and 6.1% to 7.0% for negative ratio employers. The new employer rate has also increased, to 3.4%. This represents a substantial increase year-over-year. Including both the table increase and increase in wage base (effective 1/1/24), employers could see a total tax increase upwards of 24% for employees earning $42,300 or more. Click here for more information.
New Mexico
The taxable wage base in New Mexico will increase in 2024 to $31,700, up from $30,100 in 2023. Click here for more information.
New York
In 2024, the taxable wage base in New York will increase to $12,500, up from $12,300 in 2023. Click here for more information.
North Carolina
The taxable wage base in North Carolina will increase in 2024 to $31,400, a 6.1% increase. Click here for more information.
North Dakota
In 2024, the taxable wage base in North Dakota will increase to $43,800, up from $40,800 in 2023. Click here for more information.
Oklahoma
The taxable wage base will be increasing by 5.1% in 2024, up to $27,000 from $25,700. Click here for more information.
Oregon
In 2024, the taxable wage base in Oregon will increase to $52,800, up 3.7% as compared to $50,900 in 2023. Additionally, the state announced that their tax rate schedule will move from Schedule II to Schedule III, which is a higher tax rate schedule for 2024. Based on Schedule III, tax rates will range from 0.9% to 5.4% with a new employer rate of 2.4%. This increase was driven by wage growth in 2022, which led to higher weekly benefit payouts in 2023. Click here for more information.
Rhode Island
The Rhode Island taxable wage base is increasing nearly 10% to $29,200 in 2024. Click here for more information.
South Dakota
South Dakota is reducing its unemployment insurance tax rates for 2024, according to a Dec. 29 press release from Gov. Kristi Noem (R). Tax rates in 2024 are determined using Schedule C and range from zero to 0.3% for positive-rated experienced employers and from 0.8% to 8.8% for negative-rated experienced employers, according to the South Dakota Labor and Regulation Department website. The state created Schedule C in 2023 following the enactment of HB 1011. Experienced employers are also assessed investment fees ranging from zero to 0.53%, according to the website. Click here for more information.
Texas
Utah
The Utah taxable wage base is increasing 7.1% to $48,000in 2024. Click here for more information.
Vermont
In 2024, the taxable wage base in Vermont will increase to $14,300, up from $13,500 in 2023. Click here for more information.
Washington
Washington employers will see overall unemployment tax rate categories remain the same. The total rate will include their 2024 experience rate, along with the graduated social cost rate and employment administration fund rate. Qualified Washington employers will see total rates ranging from 0.27% to 6.02%. Meanwhile, delinquent employers will receive a rate from a range of delinquent tax rates with an included delinquency rate. These rates will range from 1.25% to 8.15%. New employers pay 90% of the average rate for all businesses within their industry, set at a minimum rate of 1.00%. The taxable wage base in Washington will increase to $68,500, up from $67,600 in 2023. Click here for more information.
Wyoming
Wyoming’s unemployment-taxable wage base will rise to $30,900 from $29,100 for 2024. Click here for more information.
Virgin Islands
In 2024, the taxable wage base in the Virgin Islands will increase to $31,000, up 2.7% from $30,200 in 2023. Additionally, claimants will see an increase in maximum weekly benefit amount, now $645, up 2.5% from $629 in 2023.
About Us
501(c) Services has more than 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.
To see if your organization would financially benefit from our services, please complete a Request for Information Form today.
