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.
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References in periodicals archive ?
Returning the jobless benefit balance to the black has been good news for employers, who saw unemployment taxes fall after the statewhittled down a deficit in the fund.After reaching a surplus, unemployment taxes have fallen three times since 2016, which state officials last yearestimatedhad saved employers a combined $165 million.
Business and employees alike might be able to spend hundreds of millions of dollars less on their unemployment taxes in the near future, thanks to the low unemployment rate and the "healthy" condition of the insurance fund, Labor Commissioner Robert Asaro-Angelo said at a Senate budget hearing on Thursday.
The agency has also increased efforts to combat worker misclassification which can be used to prevent paying unemployment taxes and other taxes and benefits.
Considering that nonprofits participating in the state unemployment tax system, pay, on average, $2 in unemployment taxes for every $1 in benefits paid, leaving the system to become a reimbursable employer can seem like an attractive option.
A judge has ruled a nonprofit that provides after school services is exempt from paying unemployment taxes.
Liens can be filed for income taxes, unemployment taxes, sales taxes, real estate excise taxes, Social Security or disability taxes.
The assessment is collected with the state's other unemployment taxes on its broad and diverse economic base; collection experience is very strong.
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.
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.
The most common tax problem related to household employees is the nonpayment of income, Social Security, and unemployment taxes. Because the compensation threshold is rather low for withholding purposes, many employers might be unaware that they need to withhold and remit various payroll taxes, operating under the mistaken belief that their household help makes too little money.