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 ?
A new employer is one who has not incurred liability for state unemployment taxes within the three previous calendar years.
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.
Greg Abbott on Saturday signed House Bill 3150, which will trigger a tiny increase in unemployment taxes to cover an $84 million hit to the unemployment insurance trust fund stemming from the tax breaks, according to calculations from the Texas Workforce Commission.
Liens can be filed for income taxes, unemployment taxes, sales taxes, real estate excise taxes, Social Security or disability taxes.
Qualified 501(c) 3 organizations are not liable for federal unemployment taxes but in many cases must pay state unemployment taxes.
Unemployment taxes will be assessed on the first $41,300 of each employee's earnings in 2014.
Beginning in 2012, employers will pay unemployment taxes on the first $38,200 paid to each employee, up from $37,300 in 2010.
Under the JOBS Act, states could use the $31 billion in remaining funds for 2011 from the federal government to continue paying current federal unemployment benefits or the state could pass laws to use the funds to keep unemployment taxes down, pay interest or principal on federal unemployment loans, or promote job creation and hiring through the use of re-employment services, including wage subsidies.
Without debate, the Senate on June 10 went along with a whopping increase in unemployment taxes and a cut in benefits to replenish the shrinking unemployment trust fund.
Churches and religious organizations are exempt from paying unemployment taxes, which fund the system.
Equally telling are statistics from the federation on unemployment taxes in some of Massachusetts' aggressive competitors for market share in the technology and the knowledge economy, including North Carolina ($323), Texas ($241), Virginia ($184) and Arizona ($114).
AB 2344 (Chu) was amended to call for another tax amnesty period for the FTB and a first-time amnesty for unemployment taxes.