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.
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.
The taxable wage base in Alaska will increase 3.2% to $48,600 in 2024, up from $47,100 in 2023. Click here for more information.
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.
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.
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.
In Iowa the taxable wage base is increasing to $38,200 in 2024, a 5.8% change. Click here for more information.
The taxable wage base in Kentucky is increasing $300 in 2024 to $11,400. Click here for more information.
For 2024, the taxable wage base in Minnesota will increase 5.0% to $42,000. Click here for more information.
In 2024, the taxable wage base in Missouri will decrease to $10,000, down from $10,500 in 2023. Click here for more information.
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.
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. Click here for more information.
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.
The taxable wage base in New Mexico will increase in 2024 to $31,500, up from $30,100 in 2023. Click here for more information.
The taxable wage base in North Carolina will increase in 2024 to $31,200, a 5.4% increase. Click here for more information.
In 2024, the taxable wage base in North Dakota will increase to $43,200, up from $40,800 in 2023. Click here for more information.
The taxable wage base will be increasing by 5.1% in 2024, up to $27,000 from $25,700. Click here for more information.
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.
The Rhode Island taxable wage base is increasing 12.8% to $31,800 in 2024. Click here for more information.
In 2024, the taxable wage base in Vermont will increase to $14,300, up from $13,500 in 2023. Click here for more information.
In 2024, the taxable wage base in Washington will increase to $68,500, up from $67,600 in 2023. Click here for more information.
Wyoming’s unemployment-taxable wage base will rise to $30,900 from $29,100 for 2024. Click here for more information.
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.