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Tax Incentives
New Employer Rate
Non-Construction: 1.6 percent (maximum wage cap 2007 - $21,300)
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 2007 Taxable Wage Base is $21,300.
Related Links:
Job Service North Dakota
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