FAQs

What are Employers?

An Employer is any:

•      Individual.

•      Partnership.

•      Association.

•      Corporation.

•      Governmental entity.

•      Other type of organization including:

o  Non-Profits.

o  Religious organizations.

o  Agricultural entities.

which has in its employment one or more individuals performing services within its state.

Do Employers contribute to the unemployment tax fund?

Most Employers are required to pay Unemployment Insurance tax on wages paid to employees.

What are the Employer’s reporting requirements?

All registered and active Employers must submit quarterly Wage Reports regardless of whether or not they are liable to pay taxes.

What is an Agent?

An Agent is a third-party Administrator who has an agreement with an Employer (client) to perform certain UI roles on behalf of the client.

What is a Joint Account?

A Joint Account is an agreement between two or more Contributory Employers (as opposed to Group accounts which are for Reimbursable Employers). The Employers create a joint account for the purposes of reducing their individual tax rate. The combined tax rate applicable to Joint Account Employers is calculated based upon the collective group’s taxable wages.

What are the conditions of changing reporting method?

The Employer must be an approved 501c(3) Non-Profit or governmental Employer in an “Active” status.

Non-Profit and governmental Employers can change their reporting method during the first 30 days (after registration) once the Employer becomes active.

After the first 30 days are complete, the Employer will not be able to change its reporting method for the next 2 years (from the effective date of the reporting method change).

What is Voluntary Election of Coverage?

Not Liable Employers or Employers who are not covered for UI purposes, can choose to elect for Voluntary Election of Coverage where a rate will be assigned and they choose to be voluntarily covered. They pay their taxes to make themselves covered, even though they are not required to. Once they elect to Voluntary Coverage, they have to stick to this for at least 2 years.

How often does an Employer have to pay Security?

Security is based on wages paid during a calendar year, so SUITS recalculates Security amount every 2 years. If an Employer’s Security amount increases, they must submit the balance of the Security payment.

Do Reimbursable Governmental Employers have to pay Security?

No, only Reimbursable non-profit Employers that do not have $2 million in assets.