Equal Opportunity Employer/Program
Auxiliary aids and services are available upon request to individuals with disabilities by calling (801) 526-9240.
Individuals with speech and/or hearing impairments may call the Relay Utah by dialing 711. Spanish Relay Utah:1-888-346-3162.
There are many ways to control your unemployment tax costs. This guide provides the following tips to keep your costs as low as possible:
First, it is important to understand your unemployment
tax rate computation.
Your overall tax rate is calculated as follows:
(Benefit Costs ÷ Total Taxable Wages) × Reserve Factor + Social Tax = Overall Tax Rate
TIP: Make every effort to keep benefit costs to a minimum.
Unemployment taxes that are not paid timely are assessed interest at the rate of 1% per month. If payment or satisfactory payment arrangements are not made after the first billing notice is received,
an additional payment penalty of 5% is assessed. There is also a 1% surcharge added to your unemployment tax rate if any contributions are owing for the past
fiscal year, July 1 through June 30.
TIP: Make every effort to pay your unemployment taxes when they are due. If you cannot do so, promptly contact our Department and make payment arrangements.
You will still be charged interest on the unpaid balance, but you will not be charged the payment penalty and we generally will not file a lien if payment
arrangements are current.
You receive a 5.4% credit against your Federal unemployment tax of 6.2% if you pay all your state taxes by January 31.
Payments made after that date only receive 90% of the credit. We are required by law to provide the IRS with an electronic record of all employer payments.
They compare your Federal 940 Unemployment Tax Report against that tape. If payments are not shown as timely, the IRS generates an additional assessment, plus interest and penalty.
TIP: Review your state reports before preparing your Federal 940 report to make certain all state taxes were paid by January 31.
Your quarterly employee wage lists must be filed on a Department approved form and in the proper format. Failure to do so may result in the assessment of a $50.00 wage list penalty.
TIP: Use the Department paper form 33H, or better yet, file electronically by diskette, CD or the Internet. The preferred magnetic file version is the MMDRF
file format. Please contact us at (801) 526-9235 or 1-800-222-2857 if questions arise.
Individuals may be classified as independent contractors and excluded from unemployment tax coverage if they meet two criteria:
TIP: Make certain that workers not on your payroll are independently established in their own business. A simple test is to ask one question:
“what will their status be when they are finished working for you?” If the answer is unemployed, that’s a good indication that they are not independently established.
Please call the following numbers if you have unemployment benefit or tax questions: