State Unemployment Taxes and Tax Rates
Most states base unemployment taxes on the federal tax requirements; a few states have different requirements for when unemployment taxes must be paid; check with your state about its requirements. [ State unemployment tax rates are based on employer experience - the number of claims of similar employers in your industry - and the rates change yearly. New employers pay a standard rate until their experience rating is determined.
Employers must pay into both federal and state unemployment funds if they (1) pay wages to employees totaling $1500 or more in any quarter, or (2) have at least one employee during any day of the week during 20 weeks in a calendar year, regardless of whether or not the weeks were consecutive.
Employee Deductions for Unemployment Taxes
A few states (currently Alaska, New Jersey, and Pennsylvania) require employers within the state to take unemployment tax deductions from employees. If you have a business presence in one or more of those states, check on this requirement. ] User:
6.Most employers are faced with two unemployment taxes—federal and state. Weegy:
Most employers are faced with two unemployment taxes—federal and state. True.