The pandemic has caused difficulties in many areas but one most impacted is the unemployment insurance system. States have been deluged with the number of claimants filing claims which have overloaded their antiquated databases. Now, some states are having trouble getting their annual unemployment tax rate notices mailed to employers.
In the past, most states mailed the following year’s tax rates before 12/31 each year. However, this year, more and more states are delaying the mailing because they are still trying to manage the benefit charges that have been hitting employers’ accounts. The Federal CARES Act was supposed to assist state unemployment agencies with payment of benefits but few of them have been able to accommodate the credits in their systems.
For this reason, there are several states who will not mail until the first quarter, 2021 when historically they mailed in December. The following states told us they will mail rates as indicated:
- Alabama – January 31, 2021
- Indiana – sometime in January 2021
- Minnesota – late January 2021
- Texas – February 2021
As of today, 24 states have mailed their 2021 tax rate notices to employers and 18 more are expected to be mailed before December 31, 2020. The remaining states have historically mailed after January 1 each year so as far as we know, they are still planning to mail on or around those dates.
We will keep you updated on any new developments regarding 2021 tax rates. If you have any questions regarding this communication or about the 2021 tax rates you have already received, please contact your CCC Tax Analyst at 800-207-6926.
