The Oklahoma Employment Security Commission (OESC) announced that the 2018 state unemployment insurance (SUI) taxable wage base will be $17,600, down from $17,700 for 2017.

The 2018 SUI tax rates will continue to range from 0.1% to 5.5%. The new employer rate for 2018 will remain at 1.5%.

Due to the continued strength of the UI trust fund, SUI tax rates will again not be based on a conditional factor.

The maximum weekly UI benefit amount will decrease to $506 for 2018, down from $510.

Law diverts 5% of employer SUI taxes to new technology fund — impact on Form 940

Recently enacted HB 1110 will divert 5% of employers' SUI tax rates to the new OESC technology fund to be used to allow the agency to modernize its business processes and technology. The diversion will be in effect for calendar years 2018-2022. Employers assigned the maximum SUI tax rate will not see the diversion. Reimbursing employers are not subject to the new surcharge.

For example, an employer assigned a tax rate of 2% will have 0.1% diverted to the new technology fund (2% times 5% = 0.1%).

The portion of the employer's tax rate that is diverted is not a certified SUI tax for federal purposes. As a result, employers should not include the diverted contributions when completing the federal Form 940 worksheet.

The diversion will not negatively affect future tax rates, first, because the state uses a benefit wage ratio rate computation that doesn't take contributions into account, and, second, the law calls for the balances of the UI and technology trust funds to be added together each year to determine the conditional factor used in determining the rate schedule.

Mailing of 2018 rate notices

Tax rate notices for 2018 were issued on September 29, 2017.

For more information, contact the Commission at +1 405 557 7222 or see the Commission's website here.

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