• AIM Team

Employers will save $15 million in 2020 due to lower unemployment taxes

The Missouri Department of Labor and Industrial Relations today said employers would save an estimated $15 million in lower unemployment taxes because of the improving balance in the Unemployment Trust Fund, thanks to the sustained low unemployment rate in Missouri.

For the third year in a row, thousands of Missouri employers will see a reduction in unemployment taxes due to a decrease of $500 in the taxable wage base: from $12,000 to $11,500 effective January 1, 2020. Employers must pay unemployment taxes on that taxable wage base for each employee in a given year. The base may be increased by $1,000 or decreased by $500 in any year, depending on the balance of the Unemployment Trust Fund.

Also, the contribution rate adjustment (CRA) will reduce unemployment tax rates by 12% for a majority of Missouri employers, according the the Department.

If you want to see how these changes impact your business, the Department asks you to log in to your account at