WAGE BASE

Payroll Fact of the Day!

State unemployment insurance taxes are based on a percentage of the taxable wages an employer pays.

The Federal Unemployment Tax Act (FUTA) requires that each state’s taxable wage base must at least equal the FUTA wage base of $7,000 per employee, although most states’ wage bases exceed the required amount.

Some states apply various formulas to determine the taxable wage base, others use a percentage of the state’s average annual wage, and many simply follow the FUTA wage base.

Following is the chart of State Taxable Wage Bases for 2013, 2012, 2011, and 2010. States that have changed their wage base for 2013 are highlighted in bold face.

Reporting courtesy of American Payroll Association (PayState Update)

 

STATE

2013
WAGE
BASE

2012
WAGE
BASE

2011
WAGE
BASE

2010
WAGE
BASE

Alabama

$8,000

$8,000

$8,000

$8,000

Alaska

35,800

34,600

34,100

Arizona

7,000

7,000

7,000

7,000

Arkansas

12,000

12,000

12,000

12,000

California

7,000

7,000

7,000

7,000

Colorado

11,300

11,000

10,000

10,000

Connecticut

15,000

15,000

15,000

15,000

Delaware

10,500

10,500

10,500

10,500

District of Columbia

9,000

9,000

9,000

9,000

Florida

8,000

8,000

7,000

7,000

Georgia

9,500

8,500

8,500

8,500

Hawaii

38,800

34,200

34,900

Idaho

34,100

33,300

33,300

Illinois

12,900

13,560

12,740

12,520

Indiana

9,500

9,500

9,500

7,000

Iowa

26,000

25,300

24,700

24,500

Kansas

8,000

8,000

8,000

8,000

Kentucky

9,300

9,000

8,000

8,000

Louisiana

7,700

7,700

7,700

7,700

Maine

12,000

12,000

12,000

12,000

Maryland

8,500

8,500

8,500

8,500

Massachusetts

14,000

14,000

14,000

14,000

Michigan

9,500

9,500

9,000

9,000

Minnesota

29,000

28,000

27,000

27,000

Mississippi

14,000

14,000

14,000

7,000

Missouri

13,000

13,000

13,000

13,000

Montana

27,900

27,000

26,300

26,000

Nebraska

9,000

9,000

9,000

9,000

Nevada

26,900

26,400

26,600

27,000

New Hampshire

14,000

14,000

12,000

10,000

New Jersey

30,900

30,300

29,600

29,700

New Mexico

22,900

22,400

21,900

20,800

New York

8,500

8,500

8,500

8,500

North Carolina

20,400

19,700

19,700

North Dakota

27,900

25,500

24,700

Ohio

9,000

9,000

9,000

9,000

Oklahoma

20,100

19,100

18,600

14,900

Oregon

33,000

32,300

32,100

Pennsylvania

8,500

8,000

8,000

8,000

Puerto Rico

7,000

7,000

7,000

7,000

Rhode Island

*19,600

19,000

19,000

South Carolina

12,000

12,000

10,000

7,000

South Dakota

13,000

12,000

11,000

10,000

Tennessee

9,000

9,000

9,000

9,000

Texas

9,000

9,000

9,000

9,000

Utah

29,500

28,600

28,300

Vermont

16,000

16,000

13,000

10,000

Virgin Islands

23,700

22,600

22,200

Virginia

8,000

8,000

8,000

8,000

Washington

39,800

38,200

37,300

36,800

West Virginia

12,000

12,000

12,000

12,000

Wisconsin

14,000

13,000

13,000

12,000

Wyoming

23,000

22,300

22,800

 

* Note: For approximately 75% of employers, the wage base will be $19,600. For employers that pay at the highest UI tax rate of 9.79% (25% of employers), the wage base will be $21,100.

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