Unemployment taxes will increase for Washington State employers in 2017.
The Washington Employment Security Department has reported that the average state worker’s wages increased by 2.6 percent in 2015. The state average wage is now $56,273. The average weekly wage grew from $1,054 in 2014 to $1,082 in 2015. (These figures only include wages covered by unemployment insurance.)
This increase in worker wages means the state will now pay more for unemployment benefits and tax employers through unemployment taxes.
In 2017, employers will pay unemployment taxes on the first $45,000 paid to each employee. That amount is up from $44,000 in 2016. The number of workers in Washington covered by unemployment insurance increased by 94,629 in 2015.
Nonprofits have options
The above applies to all Washington employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many Washington nonprofits could save as much as 30 percent on their unemployment cost by opting out of the unemployment insurance tax system – an advantage provided to them by the IRS. Doing so affords nonprofits unique avenues that allow them to strategically handle unemployment claims administration and unemployment insurance taxes in ways that for-profits can only dream about.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.