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Employment Law -- Employee

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How Is My Tax Rate Calculated?

Liable employers pay tax on the first $8,500 earnings for each employee each year. Each year all active employers are mailed a Tax Rate Notice, form DOL­626, showing the tax rate for the following year. Newly liable employers are assigned a beginning rate of 2.70%. Tax rate calculations consider the history of unemployment insurance benefits paid to former workers, growth of an employer’s payroll and the overall unemployment conditions for the state.