Tag Archives: unemployment tax

Learn how to effectively manage unemployment taxes, understand rate changes, and implement cost-control measures with insights from Dunn Corporate Resources.

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.

New Jersey Adjusts Unemployment Tax Table: Transition from Table E to Table D

In a significant development for New Jersey employers, the state is transitioning its unemployment tax table from Table E to Table D. This shift aims to reflect the improving economic conditions and the stabilization of the unemployment insurance (UI) trust fund. As of July 24, 2024, however, the new tax rate notices have yet to be released. According to state regulations, New Jersey has until September 1st to announce these rates.

Understanding the Tax Tables

The unemployment tax rate that employers pay is based on a range of factors, including the health of the UI trust fund and an individual employer’s experience rating. Each year, New Jersey reviews the state of the UI trust fund and adjusts the tax tables accordingly.

Table E: Under Table E, the tax rates range from a minimum of 1.2% to a maximum of 7.0%.
Table D: With the transition to Table D, these rates will shift to a range of 0.6% to 6.4%.

This change represents a decrease in both the minimum and maximum rates, potentially offering some financial relief to employers across the state.

Awaiting the New Tax Rate Notices

Although the transition to Table D is a welcome change for many, employers must wait for the official release of the new tax rate notices. The state has a legal deadline of September 1st to provide these notices.

Leveraging Dunn Corporate Resources for Cost Control

Navigating these changes can be challenging, but Dunn Corporate Resources is here to help. Our unemployment cost control services are designed to assist employers in managing and reducing their unemployment tax rates. By leveraging our advanced technology and the expertise of our seasoned claims and tax professionals, we can identify opportunities to minimize costs and maximize savings.

Free Analysis of the New Tax Rate Notice

At Dunn Corporate Resources, we are committed to supporting our clients through every regulatory change. We offer a no-cost analysis of the new unemployment tax rate notice once it is released. This service includes:

Checking for Savings: We will thoroughly examine the new rates to identify any potential savings for your business.
Voluntary Contribution Opportunities: We will explore options for voluntary contributions that could further reduce your tax rates.

This proactive approach ensures that your business remains compliant while optimizing your tax position.

The transition from Table E to Table D marks a pivotal change in New Jersey’s unemployment tax structure. By partnering with Dunn Corporate Resources, businesses can navigate these changes with confidence, ensuring they are well-positioned to take advantage of any cost-saving opportunities. Contact us today to schedule your free analysis and stay ahead in the ever-evolving landscape of unemployment tax regulations.

What is the Taxable Wage Base?

What is the taxable wage base?

The taxable wage base is one of the key components in determining how much an employer will have to pay in unemployment taxes over the course of a year. Taxable wages vary from state to state, but generally there is a “cap” known as the taxable wage base, where an employer does not have to pay taxes on the money paid to an employee over a certain point. States determine the taxable wage base in different ways. Some use a formula or follow a certain percentage of each state’s average wages, while many follow the FUTA taxable wage base of $7,000 in 2017.

Below is a list of the taxable wage base in each state. You may notice that some states have much higher taxable wage bases than other states. These higher taxable wages are not always offset by a lower unemployment tax rate. Keep an eye out for states that adjust the taxable wage base each year. Those states are as follows: Alaska, Colorado, Hawaii, Idaho, Iowa, Minnesota, Montana, Nevada, New Jersey (lower for 2017), New Mexico, New York, North Carolina, North Dakota (lower for 2017), Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virgin Islands, Washington, and Wyoming.

State	Taxable wage base
Alabama	8,000.00
Alaska	39,800.00
Arizona	7,000.00
Arkansas	12,000.00
California	7,000.00
Colorado	12,500.00
Connecticut	15,000.00
Delaware	18,500.00
Florida	7,000.00
Georgia	9,500.00
Hawaii	44,000.00
Idaho	37,800.00
Illinois	12,960.00
Indiana	9,500.00
Iowa	29,300.00
Kansas	14,000.00
Kentucky	10,200.00
Louisiana	7,700.00
Maine	12,000.00
Maryland	8,500.00
Massachusetts	15,000.00
Michigan	9,000.00
Minnesota	32,000.00
Mississippi	14,000.00
Missouri	13,000.00
Montana	31,400.00
Nebraska	9,000.00
Nevada	29,500.00
New Hampshire	14,000.00
New Jersey	33,500.00
New Mexico	24,300.00
New York	10,900.00
North Carolina	23,100.00
North Dakota	35,100.00
Ohio	9,000.00
Oklahoma	17,700.00
Oregon	38,400.00
Pennsylvania	9,750.00
Rhode Island	23,900.00
South Carolina	14,000.00
South Dakota	15,000.00
Tennessee	8,000.00
Texas	9,000.00
Utah	33,100.00
Vermont	17,300.00
Virginia	8,000.00
Washington	45,000.00
West Virginia	12,000.00
Wisconsin	14,000.00
Wyoming	25,400.00
District of Columbia	9,000.00
Puerto Rico	7,000.00
Virgin Islands	23,500.00

For more information about how taxable wages impact your unemployment expenses contact us today! One of our experts will be happy to help.

Vermont UI Tax Rate Notices Released!

Vermont Employers: The Vermont Department of Labor has mailed out UI Tax Rate Notices on June 23, 2017. These new rates will be effective for July 1, 2017 as the state of Vermont operates on a fiscal year for unemployment. This means that your new rates will be applied for your quarterly filing due on October 31, 2017. Below is the tax rate schedule for the 2017-2018 period. The schedule being used for this period is Schedule 4. The minimum tax rate is 1.1% and the maximum tax rate is 7.7%.

Tax Rate Class	Schedule 4
0	1.1
1	1.2
2	1.4
3	1.7
4	2.0
5	2.3
6	2.6
7	2.9
8	3.2
9	3.5
10	3.8
11	4.1
12	4.5
13	4.9
14	5.3
15	5.7
16	6.1
17	6.5
18	6.9
19	7.3
20	7.7

Keep in mind that the tax rates are not always correct on these tax rate notices. It is very important that all of the numbers in the tax rate calculation get audited. The state of Vermont has an overpayment rate just under 7% according to the DOL. If charges to your account are not closely monitored, you will see a dramatic increase on your tax rate notice!

For a no-cost analysis of your 2017-2018 tax rate notice, contact an expert at Dunn Corporate Resources. We’re always happy to help!

How do Benefit Charges Work for Employers?

What is a Benefit Charge?

To fully understand the full impact of benefit charges, we must first understand exactly what a benefit charge is. When someone applies for unemployment and then gets deemed eligible to collect unemployment benefits, they are then paid out money. In some cases, the State will even pay out unemployment benefits before a determination is made. The State will make a monetary determination (often times this is stated on a claim form) to determine the maximum dollar value that a claimant can collect. Usually this is based on the amount of money that the claimant has earned within a certain period of time. Each state has different minimums and maximums for the total amount of benefits that can be paid out to a claimant.

Benefit charges against a company?

So where does all of that money being paid out come from? Well, it depends on what kind of employer you are. Certain companies such as non-profits qualify to be reimbursable employers, which means that you pay dollar for dollar when someone collects unemployment against your organization. This will also depend on the state that you operate in.

Generally speaking, most employers are tax rated, meaning that they have an unemployment tax account with the state. Just like every other tax, each employer is assigned a specific tax rate. So the more you pay out in benefits, the higher your tax rate is going to be. Conversely, the less you pay out in benefits, the lower your tax rate will be.

How can I decrease the amount of Benefit Charges to my account?

There are a few ways to do this. The first is to make sure that you are contesting all unemployment claims in an accurate and timely manner. When claims are sent back to the state late, usually the employer will be penalized and will lose the opportunity to protest charges to their account. In order to win an unemployment claim, you must submit accurate information that is both informative and concrete, documentation is a must. By winning a claim, you will effectively block your account from being charged with unemployment benefits. This does not necessarily mean that a claimant will not get paid, it just means that the payment will not be charged to your business.

The next and most effective way to reduce the charges is to audit the charges on the benefit charge statement! This sounds like a no-brainer, however almost no-one does it! There are a few things that need to be audited on these forms – the people that are collecting, and the actual dollar amount that is being collected. The government isn’t anywhere near perfect, and they make mistakes all the time. Check out the overpayment rate in your state. Some states are over 40% in overpayments! This means that if someone is supposed to collect $10,000 from you account, they are actually getting paid $14,000. Your tax rate will skyrocket if these benefit charges are not controlled!

In conclusion, benefit charges are the most important piece of the unemployment puzzle. The amount of money being paid out of your reserve account directly affects the tax rate that you will be issued. Auditing these charges is critical and can be very cumbersome without the right tools to do it.

At Dunn Corporate Resources, our cutting edge computer system, utilizing the federal SIDES System, tracks the exact amount of benefit charges on each claim to ensure that there are no errors. And if someone is being overpaid, we automatically protest those charges and ensure that the money is credited back to the employer’s account. Contact us today if you’d like your UI account reviewed, or would like a demo of our software!

UI SIDES Award Winner

Today, a huge buzz word in the world of unemployment is UI SIDES. It is a centralized federal system for electronic transmission of data, making unemployment claims handling much easier, faster, and more efficient. To learn more about UI SIDES, check out our blog post or visit the ITSC website directly.

At the National Association of State Workforce Agencies Annual Conference, Dunn Corporate Resources was honored with the prestigious award of outstanding claims response through the SIDES system. We make sure that our clients are taken care of, and that nothing slips through the cracks. Our cutting edge computer system ensures that all claims are responded to in a timely and accurate manner. Because of our UI SIDES functionality, our clients enjoy greater lead time on claims as they no longer have to worry about mailing.

Have an interest in seeing what our UI SIDES platform can do for your organization? Contact us today and an expert will be glad to show you the benefits of working with an award winning TPA.

Virginia Revised UI Tax Rate Notices

Are you a Virginia employer that recently received a revised unemployment tax rate notice? Maybe even two revised rate notices? Not sure what to make of it?

Last month the Virginia Employment Commission mailed out a set of revised rate notices. These were mailed out to notify employers that their rates had changed. However, the changes were the result of a state benefit file that was ran in error. The state has recently corrected this matter and has issued a second set of revised tax rates reflecting the original tax rating data.

Mistakes by the State are very common. Employers should be aware that the numbers used in their tax rate calculation are often times incorrect – costing thousands! The DOL has a great list to show what the error rate is in your state.

Contact Dunn Corporate Resources today to have your UI account reviewed at no cost!