2013 State Unemployment and Disability Insurance Taxable Wage Bases
Author: Rena Pirsos, Brightmine Legal Editor
While the federal unemployment insurance (FUTA) taxable wage base is $7,000, states are free to set their wage bases at $7,000 or higher. The higher the wage base, the more states collect in unemployment insurance taxes. States use various formulas for setting their wage bases; some are based on average annual wages or are inflation-adjusted every year.
The following states have adjusted their unemployment insurance taxable wage bases (TWB) for 2013; Hawaii is the only state that has yet to announce its 2013 taxable wage base; the amount for all other states not on the list will remain unchanged for 2013:
| State | 2013 TWB | 2012 TWB |
|---|---|---|
| Alaska | $36,900 | $35,800 |
| Colorado | $11,300 | $11,000 |
| Georgia | $9,500 | $8,500 |
| Idaho | $34,800 | $34,100 |
| Illinois | $12,900 | $13,560 |
| Iowa | $26,000 | $25,300 |
| Kentucky | $9,300 | $9,000 |
| Minnesota | $29,000 | $28,000 |
| Montana | $27,900 | $27,000 |
| Nevada | $26,900 | $26,400 |
| New Jersey | $30,900; the employee tax rate remains 0.425% and the maximum employee contribution will be $131.33 ($128.78 in 2012) | $30,300 |
| New Mexico | $22,900 | $22,400 |
| North Carolina | $20,900 | $20,400 |
| North Dakota | $31,800 | $27,900 |
| Oklahoma | $20,100 | $19,100 |
| Oregon | $34,100 | $33,000 |
| Pennsylvania | $8,500 | $8,000 |
| Rhode Island | $20,200; $21,700 for employers paying the highest UI tax rate | $19,600 |
| South Dakota | $13,000 | $12,000 |
| Utah | $30,300 | $29,500 |
| Washington | $39,800 | $38,200 |
| Wisconsin | $14,000 | $13,000 |
| Wyoming | $23,800 | $23,000 |
The following states have increased their disability insurance taxable wage bases for 2013:
- California. $100,880 (was $95,585 in 2012). The employee contribution rate will remain 1% of annual earnings up to the wage base, which includes the cost of paid family leave insurance. The maximum employee contribution will increase to $1,008.80 ($955.85 in 2012).
- New Jersey. $30,900 ($30,300 in 2012). The same rate applies to family leave insurance. The employee contribution rate will increase to 0.35% (was 0.2% in 2012) of annual earnings up to the wage base. The maximum employee contribution will be $111.24 ($60.60 in 2012). The family leave insurance employee contribution rate will increase to 0.1% from 0.08% and the maximum employee contribution will be $30.90 (was $24.24 in 2012).
- Rhode Island. $61,400 (was $60,000 in 2012). The employee contribution rate remains 1.2% of annual earnings up to the wage base. The maximum employee contribution will increase to $736.80 (was $720 in 2012).
The relevant state sections of the Employment Law Manual will be updated for 2013 to reflect these changes. Please continue to check HR & Compliance Center for any additional changes.
Additional Resources
Payroll > Federal Unemployment Insurance Tax > State Unemployment and Disability Insurance taxes