As you’re getting ready for next year, don’t miss these state unemployment insurance (SUI) tax updates.
Several states have announced a new taxable wage base – in some cases, it’s been lowered.
Use this list to find out which states have made changes and which ones will require the same wage base for SUI tax in 2023.
Note: The 2022 info is in parenthesis.
Latest SUI tax info
- Alabama – $8,000 ($8,000)
- Alaska – TBA ($42,500)
- Arizona – $8,000 (up from $7,000)
- Arkansas – TBA ($10,000)
- California – $7,000 ($7,000)
- Colorado – $20,400 (up from $17,000)
- Connecticut – $15,000 ($15,000)
- Delaware – TBA ($14,500)
- District of Columbia – $9,000 ($9,000)
- Florida – $7,000 ($7,000)
- Georgia – $9,500 ($9,500)
- Hawaii – TBA ($51,600)
- Idaho – $49,900 (up from $46,500)
- Illinois – TBA ($12,960)
- Indiana – $9,500 ($9,500)
- Iowa – $36,100 (up from $34,800)
- Kansas – $14,000 ($14,000)
- Kentucky – TBA ($10,800)
- Louisiana – $7,700 ($7,700)
- Maine – $12,000 ($12,000)
- Maryland – $8,500 ($8,500)
- Massachusetts – $15,000 ($15,000)
- Michigan – TBA ($9,500)
- Minnesota – TBA ($38,000)
- Mississippi – $14,000 ($14,000)
- Missouri – $10,500 (down from $11,000)
- Montana – $40,500 (up from $38,100)
- Nebraska – $9,000 ($9,000)
- Nevada – $40,100 (up from $36,600)
- New Hampshire – $14,000 ($14,000)
- New Jersey – $41,100 (up from $39,800)
- New Mexico – TBA ($28,700)
- New York – $12,300 (up from $12,000)
- North Carolina – TBA ($28,000)
- North Dakota – TBA ($38,400)
- Ohio – $9,000 ($9,000)
- Oklahoma – TBA ($24,800)
- Oregon – TBA ($47,700)
- Pennsylvania – $10,000 ($10,000)
- Rhode Island – TBA ($24,600)
- South Carolina – $14,000 ($14,000)
- South Dakota – $15,000 ($15,000)
- Tennessee – TBA ($7,000)
- Texas – $9,000 ($9,000)
- Utah – TBA ($41,600)
- Vermont – $13,500 (down from $15,500)
- Virgin Islands – TBA ($30,800)
- Virginia – $8,000 ($8,000)
- Washington – TBA ($62,500)
- West Virginia – $9,000 ($9,000)
- Wisconsin – $14,000 ($14,000)
- Wyoming – $29,100 (up from $27,700)
Under the Federal Unemployment Tax Act (FUTA), states must set a taxable wage base of at least $7,000, which is the current federal wage base for FUTA tax.
Completing Form 940
Watch out for this: When you’re completing the federal Form 940 for 2022, pay close attention to Schedule A. In four states, employers will find they owe a higher tax rate.
If you have employees in California, Connecticut, Illinois or New York, the credit for state tax paid will be reduced by 0.3%. In the Virgin Islands, the credit reduction will be 3.6%.
