Unemployment Rate Notices

Notice: Unemployment Compensation Contribution Rate Notice for Calendar Year 2017 or 2018. 

Issuing agency: The state department that’s responsible for collecting unemployment tax, which varies by state.

Action needed: Update the unemployment rate in your Gusto account. Please reference the table at the bottom of this article to find out if your particular notice has any special instructions in addition to the steps below.

Details: This notice is to inform you of a change to your unemployment rate and the day it will become effective—usually listed at the top. For example, it might say “Your employer contribution rate effective 01/01/2017 is 0.055555.”

To update your rate in Gusto:

  1. Navigate to the Company Details tab.
  2. Click Manage Taxes under the applicable State Tax section.
  3. Scroll to State Tax Settings and click edit next to SUI Rate.
  4. Select to Add a new rate.
  5. Enter the number shown on the notice as a percentage rate. For example, if your notice says you have a rate of .055555, enter 5.5555%.   
  6. Set the Effective Date to the effective date listed on your notice, typically the beginning of the current year or quarter (January 1, April 1, July 1, October 1).
    • Note: If you're making this update after the deadline listed on the notice, you will be responsible for any penalties the agency applies to your account.
  7. Click Save.

What to expect after making a rate update in your Gusto account

If...

Then...

The rate was updated prior to the effective date listed on the notice.

Gusto will withhold at the new rate starting on payrolls with a check date on or after the effective date you set in Gusto.

The rate was updated mid-quarter with a backdated effective date.

Gusto will run a reconciliation payroll at the end of each quarter to ensure the accurate quarterly payment is made based on the entire quarter’s applicable wages and new rate.

The rate was updated successfully but the effective date listed is before the date that the current quarter began.

Example: The effective date was January 1 but you did not update the rate in your Gusto account until April 15.  

Action needed: Call the agency directly to discuss potential account balances or credits resulting from previous quarters. Because your rate wasn’t updated, taxes may have been withheld incorrectly. To rectify for the current quarter, Gusto will run a reconciliation payroll.

If there’s an amount due, pay it immediately to avoid additional penalties.

If there’s an overbalance, make sure the rate discrepancy is the only reason for the credit before you request the refund.

Note: After you’ve followed the steps above and contacted the agency, send the notice in full to support@gusto.com with the subject line ‘Unemployment Rate Notice’ if assistance is still needed—agencies will never send these notices to Gusto directly.

If you see your notice on the table below, reference the special instructions column.

State

ID Number

Name of Notice

Name of Agency

Special Instructions

California

L1451909664

Notice or Contribution Rates and Statement of UI Reserve account.

CA EDD

Enter the rate listed next to “UI Contribution Rate.” ETT rates and SDI rates are automatically fixed in Gusto.

Colorado

UITL-3

Notice of Employer Liability and Unemployment Insurance Account Number

Colorado Department of Labor and Employment

Enter the rate listed as "Combined Rate.”

Florida

RT-20

Reemployment Tax Rate Notice

Florida Department of Revenue

Enter the rate listed as "Tax rate" in box 7. This tax rate is in decimal form, be sure to enter as a percentage when updating your Gusto account.

Maryland

DLLR/DUI 61 (REV 10//16)

Experience Rate Notice

State of Maryland Department of Labor, Licensing and Regulation

Enter the rate listed as “Contribution Rate”.

Minnesota

11352507

Unemployment Insurance (UI) Tax Rate Determination

Unemployment Insurance Minnesota

This one is especially tricky! Add “Tax Rate for New Employers” + “Base Rate” to get your  “Total UI Tax Rate.”

New Jersey

N.J.A.C 12:16-22.2

Unemployment Insurance Contribution Rate Calculation

State of New Jersey Department of Labor and Workforce Development

There are two rates that you’ll need to enter.


1. Final Unemployment Experience Rate listed on this notice is allocated to the unemployment and workforce funds. Gusto calculates the workforce funds (WF/SWF) internally. Use the percentage  listed on the notice as “UI Rate” and enter it into the field that says “Experience Rate” in your Gusto account.


2. Your Disability tax rate is listed as "Final Disability rate" at the bottom of page 1.

New York

IA 97 (03-13)

Notice of Unemployment Insurance (UI) Rate

N.Y.S. Dept of Labor, UI Division

Enter the rate listed as “U.I Rate.”


Please do not enter the re-employment service fund rate in addition to the above, Gusto automatically calculates this.

North Carolina

NCUI 104

Unemployment Tax Rate Assignment

North Carolina Department of Commerce Division of Employment Security

Enter the rate located in the box called "Tax Rate for year shown above".

Pennsylvania

C-657

REV 08-16

Pennsylvania Unemployment Compensation (UC) Contribution Rate Notice for Calendar Year

Pennsylvania Department of Labor & Industry

Enter the rate listed as "Total Contribution rate". This tax rate is in decimal form, be sure to enter it as a percentage when updating your Gusto account.

Texas

Form C22U95(051012)

Tax Rate Notice

Texas Workforce Commission

Enter the tax rate listed as “Effective Tax Rate” at bottom of table.

Utah

DWS-UI

Form 45

rev:11/

[Year] Contribution Rate Notice

Utah Department of Workforce Services

Unemployment Insurance

Enter the rate located in BOX J. This tax rate is in decimal form, be sure to enter it as a percentage when updating your Gusto account.

 

 

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