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February 24, 2021
2021-0416

Illinois state unemployment insurance tax rates and wage base increase for 2021

The 2021 Illinois state unemployment insurance (SUI) experience-rated tax rates will range from 0.675% to 6.875%, an increase of 0.5% from the range of 0.625% to 6.825% for 2020. The SUI taxable wage base also increases to $12,960 for 2021, up from $12,740 for 2020. (Illinois Department of Employment Security website.)

New employers pay at 3.175% for 2021, up from 3.125% for 2020. For 2021, there are no special industry new employer rates.

For 2021, an experience-rated employer whose contribution rate is higher than 5.40% and whose total quarterly wages are less than $50,000 pays contributions at 5.40% in that quarter.

2021 SUI rate factors increase

Rate factors used in the 2021 SUI rate calculation increased from those used in determining the 2020 SUI tax rates. The 2021 State Experience Factor (a multiplier) is 95%, up from 79% for 2020. The Fund Building Rate (a flat addition) increased to 0.475% for 2021, up from 0.425% for 2020. (Historical rate chart, 2011—2021.)

A chart of historical rates is here. For information on how the 2021 SUI rate factors were computed, go here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)

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