N.D. employers to see lower unemployment insurance tax rates

Effective Jan. 1, employers will see lower unemployment insurance tax rates in North Dakota. The 2013 tax rate schedule will range from 0.17 percent to 9.78 percent compared to the 2012 schedule which ranges from 0.20 percent to 9.91 percent.

Under the new tax rate schedule, more than 63 percent of the state’s employers will receive the lowest rate of 0.17 percent.

“The average 2013 tax rate will be 1.18 percent compared to the 2012 average rate of 1.30 percent. The new 2013 rates will help us maintain a stable tax environment for employers while providing an overall reduction in rates,” said Maren Daley, Job Service North Dakota executive director.

The tax rate-setting process is outlined in North Dakota Century Code and takes into account the current unemployment insurance trust fund balance, historical data, statewide annual wages and unemployment insurance benefit projections for the next calendar year.

North Dakota’s strong economy has led to an increase in average annual wages which in turn has raised the taxable wage base for 2013 to $31,800. This is the maximum amount of wages per employee that employers must pay taxes on each year. State law sets the unemployment insurance taxable wage base at 70 percent of the statewide average wage.

Job Service mailed 2013 tax rate notices to employers this week. Employers who have not received their notices by Dec. 14 should contact the Job Service Tax Department at 701-328-2814.

TTY customers can call 800-366-6888.

Tags: nd business, business