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 2023.
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 2023, your unique employer tax rate may have.
Alaska
The Alaska taxable wage base increases by 5% to $47,100 for 2023. More Alaska unemployment insurance tax details.
Arizona
The Arizona taxable wage base increases by 13% to $8,000 for 2023. More Arizona unemployment insurance tax details.
Colorado
The Colorado taxable wage base increases by 15% to $20,000 for 2023. More Colorado unemployment insurance tax details.
Delaware
Delaware has lowered their taxable wage base for the second straight year. It will be $10,500 for 2023. More Delaware unemployment insurance tax details.
Hawai’i
The Hawai’i taxable wage base increases by 9% to $56,700 for 2023. In addition to a wage base increase, Hawai’i has also increased its rates to a range of 1.2% to 6.2% in 2023. More Hawai’i unemployment insurance tax details.
Idaho
The Idaho taxable wage base is increasing by 7% to $49,900 in 2023. More Idaho unemployment insurance tax details.
Illinois
Illinois increased its SUTA and wages base in 2023. The wage base increases by 3% to $13,271. The unemployment insurance tax rates for 2023 range from 0.85% to 8.65% – an average increase of 13%. More Illinois unemployment insurance tax details.
Iowa
Iowa’s unemployment tax rates are to remain the same in 2023. The state taxable wage base, however, has increased by 4% to $36,100. More Iowa unemployment insurance tax details.
Kentucky
The taxable wage base in Kentucky is set to rise 3% to $11,100 for 2023. More Kentucky unemployment insurance tax details.
Minnesota
The taxable wage base in Minnesota is set to rise by 5% to $40,000 for 2023. More Minnesota unemployment insurance tax details.
Missouri
Missouri has lowered its taxable wage base to $10,500 in 2023 down from $11,000 in 2022. More Missouri unemployment insurance tax details.
Montana
Montana has increased the taxable wage base by 6% to $40,500 in 2023. This is the fourth straight year the wage base has increased. More Montana unemployment insurance tax details.
Nevada
Nevada has no increase in unemployment tax rates for 2023 but has increased the taxable wage base by 8% to $40,100 for all employers. More Nevada unemployment insurance tax details.
New Jersey
New Jersey is increasing its unemployment tax rates for the fourth year in a row. The wage base increases by 4% to $41,100. The new 2023 tax rates in New Jersey will range from 0.6% to 6.4%. More New Jersey unemployment insurance tax details.
New Mexico
New Mexico has no increase in unemployment tax rates for 2023 but has increased the taxable wage base by 5% to $30,100 for all employers. More New Mexico unemployment insurance tax details.
New York
New York has no increase in unemployment tax rates for 2023 but has increased the taxable wage base by 3% to $12,500 for all employers. More New York unemployment insurance tax details.
North Carolina
The taxable wage base in North Carolina is set at $29,600 for 2023. This is a $1,600 increase from 2022. More New Carolina unemployment insurance tax details.
North Dakota
New Dakota has increased the taxable wage base by 6% to $40,800 for all employers. More New Dakota unemployment insurance tax details.
Ohio
Ohio has decreased unemployment tax rates to 0.3% for the minimum rate and 9.8% for the maximum rate. 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 4% to $25,700 for all employers. More Oklahoma unemployment insurance tax details.
Oregon
Oregon has increased its taxable wage base for the fourth straight year. The 2023 increase is 7% to $50,900. More Oregon unemployment insurance tax details.
Rhode Island
Rhode Island has increased its taxable wage base by 13% to $28,200. More Rhode Island unemployment insurance tax details.
Texas
Texas has lowered its minimum tax rate for 2023 by 0.08 percentage points to 0.23%. The maximum rate has also been lowered by 0.08 percentage points to 6.31%. More Texas unemployment insurance tax details.
Utah
Utah has increased its taxable wage base by 8% to $44,800. More Utah unemployment insurance tax details.
Vermont
After increasing unemployment taxes in 2022, Vermont has returned to its 2021 tax rates of 0.4% to 5.4%. The taxable wage base has also dropped to $13,500 for all employers. More Vermont unemployment insurance tax details.
Washington
Washington’s unemployment-taxable wage base is to rise 8% for 2023 to $67,600 – the highest in the country. Washington also increased their minimum unemployment insurance tax rate by 15% to 0.27%. The wage base has increased every year for four years. More Washington unemployment insurance tax details.
Wyoming
Wyoming has no increase in unemployment tax rates for 2023 but has increased the taxable wage base by 5% to $29,100 for all employers. More Wyoming unemployment insurance tax details.
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.
