2024 SUTA Wage Base Rundown by State

Beth Dean 12.11.23
Nextep - 2024 SUTA Wage Base

Confused by the ever-changing SUTA (State Unemployment Tax Act) landscape? We’ve compiled a comprehensive list of 2024 SUTA wage bases for each state, making it easier for you to stay compliant and manage your payroll taxes effectively. Simply find your state in the table below and discover the applicable wage base for the upcoming year!

State
2024 SUTA Wage Base
Alabama $8,000
Alaska $49,700
Arizona $8,000
Arkansas $7,000
California $7,000
Colorado $23,800
Connecticut $25,000
D.C. $9,000
Delaware $10,500
Florida $7,000
Georgia $9,500
Hawaii* $56,700
Idaho $49,900
Illinois $13,271
Indiana $9,500
Iowa $38,200
Kansas $14,000
Kentucky $11,400
Louisiana $7,700
Maine $12,000
Maryland $8,500
Massachusetts $15,000
Michigan $9,500
Minnesota $42,000
Mississippi $14,000
Missouri $10,000
Montana $43,000
Nebraska** $9,000 – $24,000
Nevada $40,600
New Hampshire $14,000
New Jersey $42,300
New Mexico $30,100
New York $12,500
North Carolina $29,600
North Dakota $40,800
Ohio $9,000
Oklahoma $27,000
Oregon $50,900
Pennsylvania $10,000
Rhode Island** $29,700
South Carolina $14,000
South Dakota $15,000
Tennessee $7,000
Texas $9,000
Utah $44,800
Vermont $14,300
Virginia $8,000
Washington $68,500
West Virginia $9,000
Wisconsin $14,000
Wyoming $30,900
*Hawaii enacted an Unemployment Insurance Technology Special Fund Tax of 0.01% for all employers.
**Under Nebraska’s Employment Security Law, a determination of liability or combined tax rate will be given to the employer’s last-known address or the address.
***Rhode Island’s wage base is $29,700 for employers with the highest SUTA rate and $28,200 for all other employers.

SUTA Wage Base 101

Your SUTA rate for 2024 is like a recipe made up of two main ingredients:

  • Tax rate: This is a percentage of your employee’s wages that you pay to the state. It can range from as low as 0% to as high as 20%, depending on your state and your company’s unemployment history.
  • Wage base: This is the maximum wage per employee subject to the SUTA tax. In 2024, the federal minimum wage base under FUTA is $7,000, but most states have a higher base.

Think of it like this: Your SUTA tax payment = (Tax rate) x (Employee wages), but only up to the Wage base amount. So, the higher your tax rate or wage base, the more you’ll pay.

 

What Determines the Number

Several factors influence why SUTA wage bases vary significantly across states:

1. Solvency of the state’s unemployment fund: This is the primary factor. States with healthy funds and low unemployment rates can afford lower wage bases. Conversely, states struggling financially or experiencing high unemployment may need higher bases to ensure sufficient funds for jobless benefits.

2. State economy and average wages: States with high average wages tend to have higher wage bases. This ensures the unemployment system remains financially sound and covers a broader range of workers.

3. State legislation and policy priorities: Some states prioritize economic growth and lower taxes, leading to lower wage bases. Others prioritize robust unemployment benefits and a strong safety net, leading to higher bases.

4. Historical unemployment claims data: States with a history of high unemployment claims may have higher wage bases as a precaution. This helps them build sufficient reserves to handle future economic downturns.

5. Federal minimum wage base: While states set their own wage bases, they must be at least equal to the federal minimum wage base ($7,000 in 2024). This helps ensure some level of consistency across states.

The SUTA wage base is a complex balancing act between ensuring sufficient funds for unemployment benefits, keeping taxes low for businesses, and reflecting the economic realities of each state.

Questions about your company’s SUTA rate? Contact Nextep, and we can help!

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