Employment Law -- Employee
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.