If you’re looking for a way to reduce your state unemployment tax rate, you may have found it with voluntary contributions. A voluntary contribution is an advance payment on the following year’s SUTA (state unemployment tax). In many states, employers maintain their own SUTA balances and their SUTA rate is determined by each employer’s balance. A higher balance means a lower rate. 

CPA Practice Advisor notes that voluntary contributions are only allowed in 26 states, and although South Carolina isn’t one of them, the following states are. The rates and deadlines for making the contributions vary for each state.

  • Arizona – January 31
  • Arkansas – March 31
  • California – March 31
  • Colorado – March 15
  • Georgia – 30 days after notice
  • Indiana – 30 days after notice
  • Kansas – 30 days after notice
  • Kentucky – 20 days after notice
  • Louisiana – 30 days after notice
  • Maine – 30 days after notice
  • Massachusetts – 30 days after notice
  • Michigan – 30 days after notice
  • Minnesota – 120 calendar days after January 1
  • Missouri – January 15
  • Nebraska – January 10
  • New Jersey – 30 days after notice
  • New York – March 31
  • North Carolina – 30 days after notice
  • North Dakota – April 30
  • Ohio – December 31
  • Pennsylvania – 30 days after notice
  • South Dakota – March 27
  • Texas – 60 days after notice
  • Washington – February 15
  • West Virginia – 30 days after notice
  • Wisconsin – November 30

If you’re in one of these states, you’ll want to look into how much voluntary contributions could save you. If you have questions about how much you’d save, just give me a call at 864-836-3136.