By Payroll and Entitlements Editorial Staff
The 2021 tax rates for businesses will remain unchanged from their 2020 levels due to legislative action in response to the COVID-19 pandemic. For 2021 there will be no solvency surcharge imposed. Rates will range from 0.060% through 5.460%.
The tax rates are applicable for wages paid between January 1, 2021 and December 31, 2021. An Annual Tax Rate Notice detailing individual rates was distributed to each employer November 13, 2020. Individual rates are based on an employer’s computed benefit ratio. The tax class assignment in the notice should be used for the full calendar year. The tax rates are applicable to the first $14,000 each employee earns.
Although tax rates for each tax class are frozen at their 2020 levels, individual businesses may still move between classes based on their unemployment claim activity that was prior to the pandemic and/or not COVID-19 related.
All businesses with charges against their accounts are provided a “charge statement” quarterly to review and have 30 days to protest any charges they do not believe should be on their account (DEW Communication, 11/12/2020).
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