Posted on December 18, 2010

State Unemployment Insurance (SUI) Rate Changes

Every year, your unemployment insurance rate is determined by the unemployment agency for each state in which your employees work. Your rate is specific to your company and will be communicated to you in a letter from each state’s unemployment agency. The process for determining rate changes varies by state, but the rate is based on the history of unemployment claims for your company and/or a new business rate. It is important that we have the most up-to-date information to ensure that unemployment deposits are paid accurately for your first payroll in 2011.

Please follow the steps below when you receive a rate change letter:

1.Review each Contribution Rate Determination letter when you receive it from your state unemployment agency. Each state sends their rate changes at different times so you may not have received this information yet.

2.Email or fax the rate change letter to your payroll specialist prior to the effective date stated on the letter. If the rate on your letter has not changed, please still send to your specialist to update the tax with a 2011 effective date.

For state unemployment rate questions, please contact the appropriate state unemployment agency. Use the following link to find agency contact information for each state: www.americanpayroll.org/weblink/statelocal

If you have any additional questions regarding SUI Rate Changes, please contact your payroll specialist.