Unemployment Compensation Tax

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Unemployment Compensation Tax

A tax levied on an employer that pays the unemployment insurance for the unemployed labor force. The tax is assessed as a proportion of the employer's payroll; the employer generally passes on payment of the tax to his/her employees.
References in periodicals archive ?
The Illinois Department of Employment Security (IDES) will issue $15 million in credits to thousands of new employers within eight industries which were incorrectly charged higher unemployment tax rates since 2013.
Since 1983, 501(c)(3) employers have had the ability to opt out of the state unemployment tax system and instead pay dollar-for-dollar for their own unemployment claims through UST, a national nonprofit alternative to state unemployment taxes.
According to the Texas Workforce Commission, the bill would raise unemployment tax rates by just 0.
The average unemployment claims cost nationally is $5,174 (as of February 2012), if an employer is covering the cost directly and not paying into the state unemployment tax pool.
More than 80 percent of Washington employers will have lower or stable unemployment tax rates in 2014 compared to 2013, according to the state's Employment Security Department.
8 percent, Oregon will still have a relatively high minimum unemployment tax rate - in many states it's less than 1 percent.
Approximately 35 states expect their unemployment tax revenue to increase this year by about 16.
During another brutal economic environment--the Great Depression--Congress enacted the Federal Unemployment Tax Act in 1935.
Bukamal is a socially responsible organisation and our decision to contribute the unemployment tax on behalf of our employees is a reflection of our culture and commitment towards our people," said sales and marketing support manager Paritosh Palav.
In a statement, Barbour said reforms in the unemployment tax formula would fund the job-training programs.
1, the Internal Revenue Service says employers will be required to make Federal Unemployment Tax Act (FUTA) deposits only if their accumulated tax exceeds $500.
Differential payments clearly constitute income under section 61 of the Internal Revenue Code and would appear to be "wages" for purposes of federal income tax withholding (FITW), Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes, because the benefits are being provided based on the employee's past employment relationship with the civilian employer.