How Is My Tax Rate Calculated?

Liable employers pay tax on the first $8,500 earnings for each employee each year. Each year all active employers are mailed a Tax Rate Notice, form DOL­626, showing the tax rate for the following year. Newly liable employers are assigned a beginning rate of 2.70%. Tax rate calculations consider the history of unemployment insurance benefits paid to former workers, growth of an employer's payroll and the overall unemployment conditions for the state.

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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