State Tax Changes
Get the most current state information. Stay up-to-date on the various state regulations and legislative changes. Keeping you informed.
State Disability Insurance Update
Delaware Increases Taxable Wage
Hawaii Reduces Taxable Wage Base by $22,300 for 2008-2010
Arkansas announces 2008 Contribution Rates
State Disability Insurance Update
Laws in five states and Puerto Rico provide benefits for workers temporarily disabled by injuries or illnesses NOT related to their employment. Temporary disability benefits provide some salary continuation for persons who are unable to work because of illness or injury, but who do not qualify for benefits under workers' compensation or unemployment compensation laws. Workers' compensation laws cover only work-related injuries or illnesses, while unemployment laws require that claimants be able and available to work.
Temporary disability benefits may be financed in three ways: 1.) employee contributions withheld by employers, 2.) employer contributions, or 3.) by a combination of the two. Noted below are the EMPLOYEE contribution requirements for the six jurisdictions which have temporary disability benefit laws:
California: For 2009, the employee contributes 1.1% on the first $90,669 of annual earnings for a maximum deduction of $997.36. Employers may substitute comparable private plan coverage.
Hawaii: Half the cost of providing benefits is contributed by the employee. For 2009, however, no more than 0.5% of an employee's wages up to $877.69 weekly may be deducted (maximum weekly contribution of $4.39).
New Jersey: For 2009, employees contribute 0.5% of their first $28,900 of annual earnings for a maximum contribution of $144.50. Employers are not required to participate in the state plan if they provide comparable private plan coverage.
New York: Unchanged from 2008, the employee may contribute 0.5% of year 2009 wages, up to $0.60 per week. While the employer MUST provide disability insurance, it is the employer's decision whether to be reimbursed through employee deductions.
Puerto Rico: Again in year 2009, the employee will contribute 0.3% on the first $9,000 in wages. The maximum deduction is $27.00. Rhode Island: For year 2009, the employee contributes 1.5% on taxable wages up to $56,000. The maximum deduction is $840.00.
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Delaware Increases Taxable Wage Base The Delaware taxable wage base will be increased from $8,500 to $10,500 effective January 1, 2008. The taxable wage base has not been increased in Delaware since January 1, 1987.
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Hawaii Reduces Taxable Wage Base by $22,300 for 2008-2010 Hawaii has amended it's Employment Security Law. For calendar years 2008, 2009, and 2010 only, the term "wages" does not include remuneration in excess of $13,000 paid with respect to employment to an individual by an employer so long as the balance of the unemployment trust fund does not fall below the adequate reserve fund as specified by statute. This amount is a decrease from the 2007 taxable wage base amount of $35,300.
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Arkansas announces 2008 Contribution Rates For 2008 , basic contribution rates in Arkansas will be increased by a 0.7% stabilization tax and will range from 0.8% to 6.7%. There is no extended benefits tax or advance interest tax for 2008. In addition, new employers pay 3.6% in 2008, including the stabilization tax.
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