The formulas
- Taxable wages = employees at or above the base x wage base + wages of employees below it
- Tax = taxable wages x assigned rate
How it works
Each state sets its own unemployment taxable wage base and assigns each employer a rate. Publication 15 notes that the state wage base limit may differ from the $7,000 federal base. Enter the base and rate from your state agency notice for the year.
Count an employee's wages only up to the base for the calendar year.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Does paying state tax affect FUTA?
Yes. Paying state unemployment tax in full and on time earns the FUTA credit of up to 5.4 percent.
Where is my rate?
On the annual rate notice from your state unemployment agency.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.