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 uinteract.labor.mo.gov.