How Are Tax Rates Determined?

The tax an employer pays depends on the size of the employer's taxable payroll, the employer's unemployment insurance tax rate and the taxable wage base. The taxable wage base is $8,500 and, for calendar year 2002, the minimum and maximum tax rates are .3% and 8.2%.

The Department assigns Delaware employers one of four tax rates. These rates include, 1) the new employer rate ­ non­construction, 2) the new employer rate ­ construction, 3) an experience (merit) rate, or 4) the delinquency rate.

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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