It’s that time of year again! You guessed it: spring cleaning. Spring cleaning isn’t just for your home, it’s a great time to refresh your digital spaces as well. For payroll professionals, no database could be more important to keep clean than your employee database. As a payroll specialist, your job is to pay and file things correctly and on time. Accomplishing this is made much easier when your data is clean and organized. Each week in April we will be talking about a different area of your database and how to keep it sparkling! Today we’re talking about Unemployment Rates.
Data Polish #3: Unemployment Rates
Both federal and state unemployment rates matter for payroll processing. The state unemployment rate will be unique to each employer and it is based on the business’s unemployment claims from prior employees. To be able to file the quarterly reports correctly and to pay the correct amount of tax, your payroll provider or the in-house payroll specialist needs the correct rate for the current year.
The federal unemployment rate will be the same for all except for those states with a credit reduction. The states which have a credit reduction can vary from year to year depending on if they have paid back their loans over the previous year. Determinations are usually decided in November and can be found in the Federal Register.
Access the list of states with a credit reduction for 2022 HERE.
At The End Of The Day
Keeping your unemployment rates up to date is essential. Keeping this kind of data clean is important for any payroll specialist but it is especially important for those dealing with construction payroll. Many additional regulations are placed on contractors and construction companies that make processing payroll complex, inefficient, and burdensome. ConstructionPayroll.com is designed to address the unique needs of construction business owners, with multi-state, multi-rate, and multi-trade wage calculation capabilities, flexible employee pay options, and the ability to capture job costs, labor assignments, and worker compensation classifications with precision and accuracy.
View a quick demo today and see for yourself how fast and easy construction payroll can be with ConstructionPayroll.com!