UI Wage Base

The wage base amount for UI contributions will be adjusted effective January 1st of each year as follows: Year UI wage base Year UI wage base 2013 and prior $ 8,500 2020 $ 11,600 2014 10,300 2021 11,800 2015 10,500 2022 12,000 2016 10,700 2023 12,300 2017 10,900 2024 12,500 2018 11,100 2025 12,800 2019 11,400

For the years beginning in 2026, the wage base will permanently adjust January 1 of each year to 18% (0.18) of the state average annual wage, rounded up to the nearest $100. For purposes of determining the wage base the state average annual wage is calculated using the four most recent quarters of published New York State quarterly census of employment and wages data. The state average annual wage cannot be reduced from the prior year’s level. The wage base for 2026 is $17,600.

Remuneration includes every form of compensation paid to covered employees including salary, cash wages, commissions, bonuses, tips, vacation pay, the reasonable value of meals, rent and lodging, and other types of noncash compensation.

In determining the amount of wages subject to contribution in a calendar year for each employee, an employer who has acquired all, or part, of another employer’s business may consider the wages paid by the former employer. Also, in determining the amount of wages subject to contribution in a calendar year for each employee, wages paid and reported to another state may be considered. This usually pertains to an employee who is transferred into New York State.

Employers who share the services of a single employee are required to report and pay the contributions on their shares of the employee’s earnings. Each is liable for contributions up to the annual wage base. However, if a person is jointly employed by two or more employers that are financially related, contributions on the total earnings of that person are required from these employers only on the amount up to the annual wage base as if they were a single employer.

If two or more financially related corporations concurrently employ the same individual(s) and pay such concurrently employed individual(s) through a common paymaster, which is one of such corporations, the common paymaster may report and pay UI contributions under its own account on the wages paid to each concurrently employed individual up to the annual wage base amount. However, if reporting by the common paymaster has not been approved for FUTA purposes, then each of the employers must report its share of the wages paid to the concurrent employee(s), but pay contributions only on the amount up to the annual wage base amount in the aggregate.