How Much Must An Employer Pay In Unemployment Taxes?

The taxes an employer must pay are calculated by multiplying your quarterly taxable wages by your tax rate. They range from 0.05% to 5.40% paid on the first $7000 in wages paid to each employee in a calendar year. New employees are assigned a rate of 2.70% for a minimum of two calendar years and after that may be eligible for a higher or lower tax rate depending on:

The amount of taxes you have paid;
The amount of unemployment benefits paid to your former employees and charged to you;
The average size of your annual taxable payroll;
The overall solvency of the unemployment trust fund.

The above information does not apply to certain non­profit, governmental or Indian tribe employers who have chosen the reimbursement plan.

For additional information regarding unemployment taxes, call 602­248­9101.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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