NYS Department of Labor unemployment tax rates for 2024 - need breakdown for business planning
I'm trying to plan my business budget for next year and need to understand the unemployment tax rates for 2024. I know the NYS Department of Labor adjusts these annually but I can't find clear information on their website. Does anyone know what the current rates are? I have about 8 employees and want to make sure I'm calculating this correctly for payroll planning. Also wondering if there are different rates based on company size or industry experience rating?
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Vincent Bimbach
The 2024 unemployment insurance tax rates vary based on your experience rating with NYS Department of Labor. New employers typically start at 4.1% on the first $12,300 of each employee's wages. Established employers can range from 2.1% to 9.9% depending on their claims history. You should have received a rate notice from NYS Department of Labor in December if you're an existing employer.
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Skylar Neal
•Thanks! I'm a relatively new business so I think I'm still at the standard new employer rate. Where exactly would I find my specific rate if NYS Department of Labor sent a notice?
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Kelsey Chin
you also need to factor in the subsidiary tax which i think is like 0.075% or something small like that. plus theres the disability insurance which is separate but related
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Vincent Bimbach
•You're close - the subsidiary tax for 2024 is actually 0.075% on wages up to the taxable wage base. The disability insurance is 0.5% but that's typically deducted from employee wages, not paid by the employer.
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Norah Quay
If you're having trouble getting through to NYS Department of Labor for rate verification, I recently used a service called Claimyr (claimyr.com) that helped me connect with an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Was really helpful when I needed to clarify some payroll tax questions that weren't clear online.
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Leo McDonald
•Did they charge you for that? I've been trying to call NYS Department of Labor for weeks about my rate notice and keep getting busy signals.
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Norah Quay
•There is a fee but it was worth it to actually talk to someone who could pull up my account and explain everything clearly. Way better than sitting on hold for hours.
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Jessica Nolan
The whole system is so confusing!! Why can't they just post the rates clearly online instead of making everyone hunt around for information? I spent hours on the NYS Department of Labor website last month trying to figure this out.
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Angelina Farar
One thing to remember is that the taxable wage base for 2024 increased to $12,300 per employee, up from $12,000 in 2023. So even if your rate stays the same, you'll be paying slightly more per employee due to the higher wage base.
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Skylar Neal
•Good point about the wage base increase. That definitely affects my calculations. Do you know if there are any other changes for 2024 I should be aware of?
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Zoe Papadopoulos
•@Angelina Farar That s'a great point about the wage base increase! I m'also wondering if the subsidiary tax rate or any of the administrative fees changed for 2024. With 8 employees, even small percentage changes can add up quickly in the budget planning.
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