California 2021 Unemployment, Disability And Employment Training ...

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23 December 2020

California 2021 unemployment, disability and employment training tax rates and limits

2021 SUI tax rates and taxable wage base

2021 SDI rates and taxable wage base

The 2021 SDI taxable wage base is $128,298, up from $122,909 for 2020.

According to the October 2020 DI fund forecast, the DI fund balance was $3.3 billion at the end of 2019. The DI fund balance is projected to be $1.6 billion at the end of 2020, and $0.2 billion at the end of 2021. The decrease in the projected 2020 and 2021 year-end fund balance is due to the COVID-19 pandemic, higher benefits paid, lower anticipated contributions due to a decrease in projected taxable wages, and a change in the contribution rate formula.

The ETT rate for 2021 remains at 0.1%. The ETT taxable wage base for 2021 remains at $7,000 per employee.

California's UI trust fund is insolvent due to the COVID-19 pandemic

Despite an anticipated loan balance at the end of 2020, the federal unemployment insurance (FUTA) tax credit reduction will not be assessed for 2020. The EDD currently anticipates that FUTA credit reductions will start occurring for tax year 2022 (the additional FUTA tax due with the Form 940 filed in 2023).

Mailing of 2021 rate notices and protest deadline

Employers have 60 days from the mailing date of to protest any item on the rate notice except SDI and ETT, which are specifically set by law.(EDD Publication DE 2088C.)

Because Schedule F+ is in effect, voluntary contributions to reduce the SUI tax rates are not allowed for 2021.

The annual Form DE 428T, Statement of Charges to Reserve Account was issued to contributory employers with a mail date of September 4, 2020. The document reflected the employer's UI benefit charges for the period of July 1, 2019 through June 30, 2020. These charges were used in the computation of the calendar year 2021 state UI tax rates. (Department tax branch listserv news #443, 08-04-2020.)

In its announcement, the EDD confirmed that the FY 2020 Form DE 428T "is only reflecting charges outside of the timeframe established by AB 103."

As a result, a protest of Form DE 428T may be denied if the employer failed to respond to the first claim notice, Form DE 1101CZ, Notice of Unemployment Insurance Claim Filed or Form DE 1545, Notice of Wages Used for Unemployment Insurance (UI) Claim.

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Document ID: 2020-2929

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