The tax an employer pays depends on the size of the employer's taxable payroll, the employer's unemployment insurance tax rate and the taxable wage base. The taxable wage base is $10,500 and the minimum and maximum tax rates are .3% and 8.2% respectively.

For more information on Unemployment Insurance please refer to the Employer's Handbook.

In accordance with 20 CFR Part 603, wage information and other confidential unemployment insurance information may be requested and utilized for other governmental purposes, including, but not limited to, verification of an individual's eligiblity under other government programs.

Pursuant to HB 144 signed into law on June 18, 2007, the taxable wage base will be increased from $8,500 to $10,500 effective January 1, 2008. Accordingly, starting with unemployment insurance taxes due for the first quarter of calendar year 2008 and thereafter, employers will pay unemployment insurance tax on the first $10,500 of earnings of each employee instead of the first $8,500 of earnings of each employee. And for “benefit wages” charged to employer accounts based on unemployment insurance benefits claims filed effective January 1, 2008 and thereafter, the maximum “benefit wage” charge per claim also increases from $8,500 to $10,500. Any questions regarding the increase in taxable wage should be directed to the UI Tax Operations Unit at (302) 761-8482.