Beginning Tax Rates

Each employer that becomes liable to report workers' wages and pay unemployment taxes is assigned to an industrial classification division. Until eligible for an experience rate, regular employers (not including governmental entities and certain nonprofit organizations) are assigned an annual tax rate which is the average tax rate computed during the preceding year of all employers within the industrial classification division to which assigned, or 2.7%, whichever is the highest.

Nonprofit organizations described under Section 501(c)(3) of the Internal Revenue Code and governmental entities are assigned an annual tax rate of 1.0% until eligible for an experience rate. These organizations also have the option of making reimbursable payments.

Based on the cash balance of the Unemployment Trust Fund there may be an increase or decrease to these annual rates (see Percentage Increase/Decrease).

See table of beginning rates for current and prior years. The rates shown include applicable percentage increases/decreases.

Employers participating in the shared work program would be assigned a rate of 9.0% plus any applicable surcharge and a percentage increase/decrease until eligible for an experience rate.