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Texas raising unemployment taxes

December 09, 2009
Staffing Industry Analysts North American Daily News

Texas state unemployment insurance rates will jump in 2010, the Texas Workforce Commission announced Tuesday. Texas joins a number of other states in increasing rates.

Texas' increase raises the minimum state unemployment tax to 0.72% of the first $9,000 of an employee's wages in 2010 from 0.26% in 2009.

That means the minimum tax rate will go to $64.80 for an employee that makes $9,000 or more in 2010 from $23.40 in 2009.

State unemployment taxes are experience rated based on the number of unemployment claims filed against an employer. The more claims, the more an employer must pay.

The maximum state unemployment tax in Texas will rise to 8.60% of the first $9,000 in wages in 2010 from 6.26% in 2009.

For a worker earning more than $9,000, the tax under the maximum rate will go to $774 in 2010 from $563.40 in 2009.

The Texas Workforce Commission said the increase comes because of the amount of unemployment insurance benefits paid.

Approximately 67% of Texas employers pay the minimum rate, according to the Texas Workforce Commission. Only 3.3% of Texas employers pay the maximum rate.