Indiana is just one of 33 states expected to increase its unemployment tax for 2010. On May 13, 2009, Governor Mitch Daniels signed House Bill 1379 into effect. This bill raises unemployment insurance taxes on employers, beginning in 2010, in an attempt to make the Indiana unemployment insurance fund solvent.
Under the new law, beginning with the 2010 calendar year, remuneration paid to an employee up to $9,500 will be subject to the state’s unemployment insurance tax—an increase from the maximum of $7,000 for pre-2010 calendar years.
Additionally, beginning January 1, 2010, the highest employer contribution rate will increase to 12 percent from 5.6 percent. The lowest rate for employers with no claims actually goes down ($9,500 x .7% = $66.50 in 2010 versus the current $7,000 x 1.1% = $77 per employee). The state will collect increased tax dollars from employers with a lot of claims against them (a maximum of $9,500 x 9.5% = $902.50 in 2010 versus the current $7,000 x 5.6% = $392 per employee).
The rates are scheduled to be higher in 2011.
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