Tag Archives: unemployment insurance

New York State Unemployment Insurance Changes for 2026: Updates for Employers

As 2026 approaches, New York State employers must gear up for important updates to the state’s unemployment insurance system. These changes, aimed at strengthening New York’s unemployment framework, will impact business budgeting and compliance. Here’s a clear overview of the key changes and their implications for your organization.

Maximum Weekly Benefit Increase

Effective October 2026, New York’s maximum weekly unemployment benefit will rise to 50% of the state’s average weekly wage, up from $869 in 2025. This increase is designed to better support unemployed workers but may strain the state’s unemployment insurance trust fund, potentially leading to indirect cost increases for employers. Businesses should prepare for higher benefit payouts and adjust their strategies to manage potential spikes in unemployment claims.

Taxable Wage Base Increase

New York’s taxable wage base for employer contributions, currently $12,800 per employee, will increase in 2026. While the exact new figure hasn’t been confirmed, this change aims to enhance the solvency of the state’s unemployment insurance trust fund. Employers should anticipate a higher taxable wage base, which could raise their contribution costs. Proactive financial planning will be essential to address this shift.

Employer Contribution Rate

No specific changes to New York’s employer contribution rate table for 2026 have been outlined. For 2025, state and local government entities in New York maintain a contribution rate of 0.6% of taxable wages, with no announced adjustments for 2026. Employers should stay alert for any updates to the rate table, as even minor changes could affect payroll expenses.

Employer Savings from Debt Payoff

A significant relief for New York employers comes from the state’s $8 billion payoff of federal unemployment debt. In 2026, businesses will save approximately $100 per employee, with savings growing to $250 per employee in 2027. These savings, resulting from the elimination of federal interest taxes, offer employers an opportunity to reinvest in their operations or workforce.

How Dunn Corporate Resources Can Support New York Employers

Navigating New York’s unemployment insurance changes demands strategic cost management and compliance expertise. Dunn Corporate Resources’ Unemployment Cost Control Service provides customized solutions to help New York employers minimize unemployment insurance costs. Our team analyzes your claims data, optimizes contribution strategies, and implements proactive measures to reduce liabilities. With the upcoming benefit and wage base increases in New York, our service ensures you mitigate financial impacts while leveraging savings from the debt payoff. Trust Dunn Corporate Resources to keep your business compliant and cost-efficient in New York’s evolving unemployment landscape.

Get ahead of these changes—contact Dunn Corporate Resources today to protect your business’s bottom line!

Smart Move or Wasted Money? The Truth About TWC Voluntary Contributions

As a business owner in Texas, you’re constantly navigating complex regulations, tax requirements, and cost-saving opportunities. One lesser-known—but highly impactful—option from the Texas Workforce Commission (TWC) is the Voluntary Contribution program.

At first glance, the idea of voluntarily giving the state more money might seem confusing, even counterproductive. But when used wisely, this strategy can lead to significant unemployment tax savings for your company. So, is it a smart financial move—or just wasted money? Let’s dig into the facts.

What Is a TWC Voluntary Contribution?

Each year, the TWC assigns your business an unemployment tax rate based on your history of claims, payroll size, and prior contributions. This rate determines how much you pay into the state’s unemployment insurance fund.

If your tax rate increases due to recent layoffs or claims, you have the option to make a voluntary payment to reduce that rate. Essentially, you’re pre-paying into the system to improve your rating, which in turn lowers your future unemployment taxes.

It’s not a donation—it’s a strategic investment.

Why Would Any Business Pay More Upfront?

Let’s say your unemployment tax rate rises due to a few claims. With that higher rate, you’ll owe more on every dollar of your taxable payroll. But if you make a voluntary contribution, the TWC may offer a lower rate—helping you save over the course of the year.

Here’s a quick example:

Taxable wages per employee: $9,000
Number of employees: 20
Current rate: 3.8%
Potential reduced rate: 2.9%

That’s a difference of $1,620 in savings. If the voluntary contribution costs $1,000, you’re still ahead by $620—and that’s just one year.

When It Makes Sense

TWC Voluntary Contributions make sense when:

You’ve had recent unemployment claims
Your workforce is growing or stable
You can calculate clear, upfront savings
You want predictability in your tax obligations

Many employers use this tool to manage spikes in their unemployment tax rate, especially following workforce adjustments or restructuring.

Common Missteps to Avoid

It’s easy to overlook the voluntary contribution option. You typically have 60 days from the date your TWC tax rate notice is issued to act. Miss this window, and you’re locked into the assigned rate for the year.

Another mistake? Skipping the math. Many businesses guess at whether it’s worth it, only to find out later they could have saved thousands. That’s where experience and proper analysis come into play.

Make a Strategic Move with Dunn Corporate Resources

At Dunn Corporate Resources, we specialize in helping businesses like yours navigate and optimize unemployment costs. Whether you’re considering a voluntary contribution or simply trying to understand your tax rate notice, we’re here to guide you every step of the way.

With our team, you get:

A detailed review of your TWC tax rate notice
A clear breakdown of potential savings from voluntary contributions
Expert help in filing forms and meeting deadlines
Long-term strategies to minimize unemployment tax liability

We’re not just consultants—we’re partners in your cost control journey.

The Bottom Line

Is a TWC Voluntary Contribution a smart move or wasted money? That depends on your specific numbers. But one thing’s for sure: when used correctly, it can be a powerful way to take control of your unemployment tax rate and protect your bottom line.

Instead of reacting to higher costs, voluntary contributions allow you to be proactive—something every business can benefit from.

So if you’ve received your tax rate notice and are unsure about your next step, don’t go it alone. Let Dunn Corporate Resources help you make the smartest financial move for your business.

Employee or Independent Contractor?

Deciding whether an individual is an employee or an independent contractor can be difficult. This is a recurring question whenever employers are determining how to treat payments for services. The IRS outlines three categories to help define the degree of control that an employer has and the independence that an individual has:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

If it is still not clear as to how an individual should be classified, the IRS gives employers the option to file the Form SS-8. The IRS will then review the facts and circumstances and make an official determination on the individual’s working status.

Tennessee Releases 2017-2018 Tax Rate Notice

TENNESSEE EMPLOYERS: The state has recently mailed out the unemployment tax rate notice for the taxable year 2017-2018. This year the state is using premium rate table six to assign tax rates to employers.

Are you sure that the numbers on the tax rate notice is correct? Should your tax rate be revised? Are the figures used in the tax rate calculation accurate?

Contact us today to see how Dunn Corporate Resources helps ensure that employers recieve the LOWEST POSSIBLE tax rate. We are happy to offer a no-cost analysis of you unemployment tax account to see what savings may be available!