What tax rates are applicable to employers other than governmental employers?
Since January 1, 1986, new employers have been assigned an entry level tax rate of either 2.7% or the applicable industry average tax rate, whichever is higher. The industry average was based on the Standard Industrial Classification Code (SIC) prior to January 1, 2002. Since tax year 2002, the industry average is based on the North American Industry Classification System (NAICS). The employer will keep the entry level tax rate for approximately 18 months, and will then be eligible for a tax rate computation. Employers with North American Industry Classification System (NAICS) Code 115111 (Cotton Ginning) or 115114 ( Post -Harvest Crop Activities) receive the lessor of the computed unemployment insurance tax rate or 5.4%.
