![]() (Note that in Louisiana and Tennessee, the SUI wage base can decrease to $7,000 when the trust fund reaches a certain level, and in Florida the taxable wage base reverted to $7,000 beginning in 2015.)Ī preliminary look at the 2020 state unemployment taxable wage basesįollowing is a preliminary list of the 2020 state unemployment insurance (SUI) taxable wage bases (as compared to 2019) and employee SUI withholding rates, if applicable. Now, only three jurisdictions continue to have a fixed wage base of $7,000 (Arizona, California and Puerto Rico, though Puerto Rico passed legislation that allows the taxable wage base to increase to as much as $10,500 at the Secretary's discretion), compared to seven in 2010. The strain on SUI trust fund reserves in the last decade sparked numerous changes in state laws. Department of Labor, Comparison of State Unemployment Laws, 2019.) Conversely, in 2019, the wage base was fixed in 27 states and Puerto Rico. Department of Labor, 23 states and the Virgin Islands had a flexible wage base in 2019. Consequently, the SUI wage base is flexible, meaning it is indexed to the average wage or varies based on the trust fund balance. Some states are conservative in their approach to maintaining adequate SUI trust fund reserves. ![]() The 2020 FUTA wage base of $7,000 has remained unchanged since 1983, despite increases in the federal minimum wage and annual cost-of-living adjustments over the last 36 years. States are required to maintain an SUI wage base of no less than the limit set under FUTA. State unemployment insurance (SUI) trust funds are largely financed by employer contributions (except in Alaska, New Jersey and Pennsylvania, where employees also make contributions). ![]() State unemployment insurance wage bases for 2020 ![]()
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