Author: Rena Pirsos, XpertHR 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 XpertHR for any additional changes.

Additional Resources

Payroll > Federal Unemployment Insurance Tax > State Unemployment and Disability Insurance taxes