What's the rate for state unemployment?
Each employer is assigned an unemployment rate by his or her state to determine how much unemployment tax a company pays each year. There are several different formulas used by the states to arrive at the rates.

The most commonly used formula uses the experience rating for the employer, and the overall unemployment situation for the state. Experience rating simply means how much money paid out in benefits is attributable to the employer.

Each state sets its own wage base, on which a calculation is performed. The range for this base goes from $7,000 (federal base) to unlimited, which means the employer pays at the rate assigned on all wages paid during the year.

The states also set the requirements for the method in which wage and tax information is reported and paid. Every state has its own forms and formats, and many also require specialized automated reporting when the number of employees exceeds a predetermined threshold.

Federal and state employment agencies share the information reported to each agency. This mandates that all reports submitted to states match the information reported to the federal government. Failure to do so can result in penalties and interest.

More information can be found by contacting your State Department of Labor or Unemployment Agency.