California Unemployment Insurance Tax rates 2018. What is Unemployment Insurance tax?
California Unemployment Insurance tax
Employer has to provide the UI tax through payroll taxes. As a result UI tax schedule and taxable wages are calculated annually.
Unemployment tax rate calculation depends on the UI fund and employer’s experience.
Therefore, Maximum UI tax rate can be 6.2% while the Minimum UI tax rate can be 1.5%.
Do note that The Voluntary UI program is not in effect for 2018.
Unemployment Insurance tax 2018
The 2018 taxable wage limit is $7,000 per employee.
The UI tax rate for new employers is 3.4 percent (.034) for a period of two to three years.
The UI maximum weekly benefit amount is $450.
UI will be combines on a single rate notice along with ETT and SDI tax rates.
Many tax forms are available for the Unemployment Insurance tax application. Either you choose which is the correct tax form for your requirement or you can approach a tax preparer.
Please read How to select the right tax preparer for you?
UI tax fraud
Any employer using improper UI benefits will face financial impact and higher UI taxs as well.
Hence, if you don’t want to end up paying higher unemployment insurance taxes, then please avoid improper payment of Unemployment insurance benefits.
In conclusion, never manipulate the UI rate and declare as is to the CA government and improve the credibility and trust.
The employer rates are available online at www.edd.ca.gov/e-Services_for_Business