Employers in California, Connecticut, Illinois, New York, and the US Virgin Islands might pay higher payroll costs for 2023 because of a Federal Unemployment Tax Act credit reduction, according to a 2023 unemployment insurance solvency report from the US Labor Department.
California, Connecticut, Illinois, New York, and the US Virgin Islands had outstanding balances on their federal unemployment tax account as of Jan. 1, 2023, according to the report. For a jurisdiction to be assessed a credit reduction, it must have a balance on Jan. 1 for two consecutive years and on Nov. 10 of the year that the reduction ...