What Is The Tax Rate For A New Employer?

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What Is The Tax Rate For A New Employer?

The contribution rate for new or newly covered employers will be 2.4% for the year 2002. Thereafter, employers are advised of their individual contribution rate in March of each year. Contribution rates are based upon the ratio of the employer's reserve balance to your average annual payroll. The "tax base" is a limitation to the amounts of wages that are subject to tax. The tax base is equal to the State's average annual wages for employers contributing to the Unemployment Insurance Trust Fund and is computed at the beginning of each calendar year. The ‘tax base' for 2002 is $29,300.

From January 1, 1999 through December 31, 2003, employers will also be subject to a State Employment and Training (E&T) fund assessment on taxable wages paid to an employee. The percentage rate for this additional tax is .01% for 2002. This assessment does not apply to selffinanced and contributory rated employers with a rate of 0.0% or 5.4%.

For more information regarding contribution rates and schedules refer to the Unemployment Employers Manual.

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