NYS Department of Labor - what is the federal unemployment tax rate for 2024?
I'm trying to understand my employer's unemployment tax obligations for this year. Does anyone know what the federal unemployment tax rate for 2024 is? I'm helping my small business owner figure out payroll taxes and the NYS Department of Labor requirements seem confusing when combined with federal rates. Is there a difference between what employers pay federally versus what they pay to NYS Department of Labor for unemployment insurance?
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Evelyn Kim
The federal unemployment tax rate (FUTA) for 2024 is 6.0% on the first $7,000 of each employee's wages. However, employers can get a credit of up to 5.4% if they pay their state unemployment taxes on time, making the effective FUTA rate 0.6% for most employers. NYS Department of Labor has its own separate state unemployment insurance (SUI) rates that vary by employer experience rating.
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Margot Quinn
•Thanks! So the 0.6% is what most employers actually pay federally, and then they pay separate NYS Department of Labor rates on top of that?
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Diego Fisher
yeah my boss was complaining about this stuff last month, i think its like 0.6% federal plus whatever new york charges which is different for every company
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Henrietta Beasley
For NYS Department of Labor specifically, new employers typically start at 4.1% for their first few years, then it adjusts based on their claims experience. You can find your exact rate on your NYS Department of Labor quarterly statement. The federal and state rates are completely separate - you pay both.
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Lincoln Ramiro
•Wait, so if I'm understanding this right, a new employer in NY would pay 0.6% federal PLUS 4.1% to NYS Department of Labor? That seems like a lot!
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Henrietta Beasley
•Yes, that's correct. It's two separate taxes with different wage bases too. Federal is on first $7,000, NYS Department of Labor is on first $12,300 for 2024.
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Faith Kingston
If you're having trouble getting through to NYS Department of Labor for employer questions, you might want to check out claimyr.com - they have a service that helps people connect with actual agents. I used them when I had issues with my own unemployment claim and they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth it if you need to talk to someone about employer obligations.
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Margot Quinn
•Interesting, I didn't know there were services to help get through to NYS Department of Labor. The phone lines are always so busy.
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Emma Johnson
Just wanted to add that the rates can change if your state has outstanding federal loans. New York usually stays current so you get the full credit, but it's worth double-checking each year.
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Hiroshi Nakamura
This is really helpful information! I'm also dealing with payroll setup for a small business. One thing I'm wondering about - do these NYS Department of Labor rates apply from the very first employee you hire, or is there a minimum threshold? I know some states have exemptions for very small employers, but I want to make sure we're compliant from day one.
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