How unemployment benefits affect your taxes
The process used to determine tax rates
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There are two major components of state unemployment taxes, an experience-rated tax based on an average of the employer's layoff history over the past four fiscal years and a shared-cost (social) tax based on costs from the previous year that can't be attributed to a specific employer. Please see the Unemployment insurance taxes fact sheet for more information.
For 2014, the estimated average unemployment tax rate is 2.19 percent. Tax rates range from as low as 0.14 percent to as high as 5.82 percent.
Employers with delinquent tax bills also may receive a range of delinquent-tax rates. The lowest delinquent-tax rate for experienced employers in 2014 is .95 percent, and the highest is 7.85 percent.
The average tax rate in recent years has been:
|Year||Average Tax Rate|
We send you your tax rate in December for the following year. That is your rate for the entire year.
2014 tax ratesThese forms will help you understand your 2014 tax rates.
2014 tax rate chart (PDF, 115KB)
Archive tax ratesArchived tax rate charts
2013 (PDF, 66KB)
2012 (PDF, 114 KB)
2011 (PDF, 47.4KB)
2005-2010 (PDF, 194KB)
Calculate your tax rateYou can use our online calculators to figure out your tax rate. These calculators will work if you have your taxable wages and benefit charges for the last four years. This calculator will determine 2014 tax rate only.
2014 tax rate calculator (XLS, 3.05MB)
New employersIf you are a new employer or haven't been in business long enough, you won't have enough "experience" to get your own tax rate. Instead, you will be assigned a rate based on your industry. For 2014, new employers will pay 90 percent of the average rate for all businesses in their respective industries.
Delinquent-tax rateYou must send all past-due taxes and/or late reports to us by September 30 to avoid a delinquent rate for the following year.
If you owe taxes and cannot make full payment, contact your tax account management center to set up a payment plan. If your payment plan is approved before September 30, you will receive your earned tax rate for the following year, rather than the delinquent rate.