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© 2019 American Payroll Institute, Inc. Supplemental wage tax rate increases. Effective January 1, 2019, Vermont withholding for supplemental payments can be estimated at 30% of federal withholding (previously 24%). This means that a flat rate of 6.6% (previously 5.28%) is used if the federal supplemental withholding rate of 22% is applied and 11.1% (previously 8.88%) if the federal supplemental withholding rate of 37% is applied (because the employee’s total supplemental wage payments in the calendar year exceed $1 million) [DOT, 2019 Income Tax Withholding Instructions, Tables, and Charts]. State Unemployment Insurance Voluntary Contributions Emethod mployers in 27 states (nearly all using the reserve ratio of experience rating) may be able to make voluntary contributions to their unemployment insurance (UI) tax accounts to reduce their tax rates. Before making a voluntary contribution, the employer must determine if the amount of the contribution will be less than the increased amount of tax using the higher rate. The following chart shows the states that generally allow voluntary contributions and how much time they give the employer to make the contribution (this updates The Payroll Source®, §7.2-4). 2 | PayState Update January 7, 2019 • Volume 21 • Issue 1 State Voluntary Contribution Deadline AZ February 28 AR Postmarked by March 31. CA Last workday of March not allowed if schedule E, F, or emergency solvency surcharge is in effect or if employer has negative account balance or outstanding liability. Not permitted in 2019 because Schedule F+ (Schedule F plus a 15% emergency solvency surcharge, rounded to the nearest tenth) is in effect. CO March 15 GA 30 days after rate notice is mailed no later than 120 days after January 1. IN 30 days after rate notice is mailed no later than 120 days after January 1. KS 30 days after rate notice is mailed no later than 120 days after January 1. KY 20 days after rate notice is mailed no later than 120 days after January 1. Employers allowed to make voluntary contributions only every other year (and only for employers with a negative reserve balance). LA 30 days after rate notice is mailed. ME 30 days after rate notice is mailed (unless 10-day extension granted by commissioner for good cause). MA 30 days after rate notice is issued, or 120 days after January 1, whichever is earlier. MI 30 days after rate notice is mailed no later than 120 days after January 1. MN April 30 (120 days after January 1) must be made electronically. MO Postmarked by January 15. NE January 10 NJ 30 days after rate notice is mailed, unless 60-day extension is granted for good cause no later than 120 days after July 1. NY March 31 NC 30 days after the date shown on annual rate notice. ND April 30 OH December 31 PA 30 days after rate notice is mailed, but no later than 120 days after January 1 extension given for good cause. RI 30 days after rate notice is issued, or no later than April 30 (120 days after January 1). SD December 31 TX 60 days after rate notice is mailed may be extended to 75 days, but no later than 120 days after January 1. WA February 15 only permitted for employers increasing by at least 12 rate classes. WV 30 days after rate notice is mailed. WI November 30