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Tax Incentives
New Employer Rate
Non-Construction: 1.87 percent (maximum wage cap 2006 - $20,300)
New Employers are: Non-Construction covered after June 30, 2004
When employers become liable for unemployment insurance, they are classified as �new employers� and are assigned a new employer rate. Tax rates are re-determined for each calendar year based on the employer�s history as of the preceding October.
If prior to October, then �non-construction� employers have at least six quarters of coverage and they are classified as �experience-rated employers� beginning that calendar year. Otherwise they continue as �new employers.� Experience-rated employers are assigned rates based on their record of unemployment insurance taxes paid and benefits charged.
The rates vary each year depending on the employer�s individual history and the condition of the state�s unemployment compensation trust fund. The maximum amount of each worker�s wages subject to taxation each year is 70 percent of the statewide average annual payroll. The 2006 Taxable Wage Base is $20,300.
Related Links:
Job Service North Dakota
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