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State unemployment tax rates increase this year

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in Human Resources

Texas joins a number of other states that have had to increase unemployment tax rates in 2010. The recession has steadily drained the state’s Unemployment Compensation Fund.

The minimum state unemployment tax now stands at 0.72% of the first $9,000 of an employee’s wages, up from 0.26%. As a result, the minimum tax rate for an employee who makes $9,000 or more will be $64.80. Last year, it was just $23.40.

About 67% of Texas employers pay the minimum rate, which is still one of the lowest in the country.

The maximum unemployment tax is now 8.6% of the first $9,000 in wages. Previously, it was 6.26%. For employees who earn more than $9,000, that means the tax increases to $774, up from $563.40. Only 3.3% of employers pay the maximum rate.

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