2025 Tax Rates – Below is a list of the major states that recently issued their 2025 Tax Rates, bringing the total number to 44 states.
Arizona – Issued 2025 Tax Rates on December 30. Rate schedule has changed from 2024, with a minimum rate of 0.04%(down from 0.05%) and a maximum rate of 9.72%(down from 14.03%).
Florida – Issued 2025 Tax Rates on December 19. Minimum rate(.10%) and maximum rate(5.40%) remain the same for 2025. However certain components of the Tax Rate Calculation have been reduced resulting in overall lower rates for most employers.
Georgia – Issued 2025 Tax Rates on January 2, 2025. Rate schedule stays the same as 2024 with a minimum rate of 0.04% and a maximum rate of 8.10%
North Carolina – Issued 2025 Tax Rates on December 16. Rate schedule stays the same as 2024 with a minimum rate of 0.06% and a maximum rate of 5.76%
Pennsylvania – Issued 2025 Tax Rates on December 31. Rate schedule stays the same as 2024 with a minimum rate of 1.419% and a maximum rate of 10.3734%.
2025 Taxable Wage Base Update
49 states have confirmed the 2025 Taxable Wage Base for employers.
Important Notice – Michigan Taxable Wage Base
The current Taxable Wage Base in the state of Michigan is $9,500, however, Employers can “qualify” for a reduced 2025 Taxable Wage Base of $9,000 if they meet the following criteria:
· No missing or estimated reports
· Must not have an unpaid balance of $25 or more
The delinquency must be cleared by February 15, 2025. The Taxable Wage Base decrease could result in a maximum cost decrease of $52 per employee for maximum rated employers. Contact your Account Manager should you have any questions.
FUTA UPDATE – 2024
California and New York currently have outstanding FUTA Title XII Loans for 2024 and have failed to pay back the loans by November of 2024. Employers will have to pay an additional 0.90% on employees reported in these states retroactively to January 1, 2024.
1. Employers have until January 31, 2025 to pay the additional 0.90% on employees in these two states.
2. The Additional 0.90% results in an estimated increase of $63 per employee for 2024 (0.90% * $7,000 FUTA Wage Base).
Total FUTA Rate will be 1.50% in these states for 2024. Virgin Islands is 4.80%