As unemployment rates continue to rise and state trust fund balances are depleted, the state agencies must look for ways to increase unemployment tax revenues. Along with raising the tax rates, many states will increase the taxable wage base.

Looking forward to 2010, at least thirty (30) states are expected to increase their taxable wage base. Six (6) states have already passed legislation to increase the wage base and five (5) others have legislation pending. The remaining nineteen (19) have automatic escalators that trigger an increase when the trust fund balance falls below a certain level. At this point in time, it is anticipated that the trust fund balances will cause an increase to the wage base.

Of the remaining twenty three (23) states, twenty (20) of them would have to enact legislation in order to increase the wage base. Nothing has been introduced at this time. The remaining three (3) do have automatic escalators, but the trust fund balances have yet to be determined.

In an economic situation such as this, the last thing an employer needs is an increase in taxes. That however is what employers will see in at least thirty (30) states.

We are monitoring the economic situation of each state to determine the potential impact it may have on our employers

Employers who would like help in budgeting for 2010 should contact Pete Krieshok at (314) 214-7325 or by email at pkrieshok@talx.com