What Is The Tax Rate For New Employers?

Unemployment taxes must be paid on the first $7,000 of wages paid to each employee per year. The initial tax rate is 2.7% and remains in effect for 10 calendar quarters, at which time the account will receive a computed tax rate. The main factor determining your computed tax rate is the ratio of benefits charged to your account to your reported taxable payroll for the previous three years. The minimum tax rate allowed by law is 0.1% and the maximum tax rate allowed by law is 5.4%.

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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