Recently enacted legislation, SB 2808, which was signed into law by Governor Phil Bryant on March 21, 2016, allowed the Mississippi Department of Employment Security to issue the previously delayed 2016 state unemployment insurance (SUI) tax rates to employers on March 22, 2016.

SB 2808 decreases SUI tax rates for calendar year 2016 to range from 0.0% to 5.4%, down 0.2% for most employers from 2015, and increases the administrative surcharge to 0.24% for 2016 (up from 0.16% for 2015) to provide for a new workforce training program. (Telephone conversation, tax department representative, March 23, 2016.)

New employers continue to pay SUI taxes at 1.0% for the first year of liability, 1.1% for the second year, and 1.2% for the third year, plus the 0.24% surcharge.

The SUI taxable wage base remains at $14,000 for calendar year 2016.

Bill details

As previously reported, SB 2808 reduces the minimum general experience rate portion of the total SUI tax rate to 0% for years that the UI trust fund is strong and increases the administrative surcharge to 0.24% for calendar year 2016, and 0.2% thereafter, to fund a new Mississippi Works program that provides primarily for the job training of unemployed individuals.

The legislation also provides for noncharge of UI benefits to an employer's account for a fraudulent UI claim, provided notification of the erroneous claim is made by the employer to the UI agency within 10 days of the notice of claim mailing date.

For more information, contact the Department at +1 866 806 0272 or +1 601 321 6000, and see the governor's news release.

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