The amount of contributions an employer owes is determined by multiplying an assigned contribution rate by the taxable wages paid to each employee for each calendar year. The taxable wage base for calendar year 2015 is $9,000 for each employee

Year	Taxable Wage Base
2012 and prior	$8,000
2013	$8,500
2014	$8,750
2015	$9,000
2016	$9,500
2017	$9,750
2018 and thereafter	$10,000

In addition, the employer may also be required to withhold employee contributions from each employee's gross wages. The employee contribution withholding rate is determined annually.

Wages include not only salary, commissions, bonuses and tips, but also sick or accident disability payments (except workers' compensation payments) made by an employer or third party (insurance company) and certain fringe benefits. Additionally, the cash value of payments made in a medium other than cash, such as lodgings and meals, are also considered wages.

Calculating Employee Contribution

The employee contribution rate is determined annually. The employee contribution rate has been set at 0.07 percent for calendar year 2015.

Year	Employee Rate
2010 - 2012	0.08%
2013 - 2015	0.07%

For the periods in which employee contributions are in effect, all employers are required to withhold employee contributions at the time wages are paid, regardless of the method used to finance UC costs. These monies are a trust fund obligation and must be remitted to the Department of Labor & Industry with quarterly contribution reports. Failure to withhold employee contributions and to promptly remit to the fund such contributions withheld in trust, can result in civil fines and/or criminal prosecution of the employer and/or personal liability; including the filing of liens against the employer and officers and agents of the employe

Employee contributions are based on an individual's total (gross) wages. The contributory taxable wage base ceiling does not apply to employee contributions. Employee contributions are not credited to an employer's reserve account, nor are they considered to be "contributions" for federal certification purposes under the Federal Unemployment Tax Act [FUTA].

Penalty for Filing a Report Late

A penalty is assessed against any employer who fails to submit a quarterly tax report when it is due. The penalty is 10 percent of the total contributions payable for the quarter, with a minimum of $25 and a maximum of $250.

Interest Charged on Contributions Paid Late

Interest charges are computed per month, or fraction of a month, on unpaid contributions from the date such contributions are due until the date paid. Both employer and employee contributions are subject to interest charges if paid after the due date.

Year	Monthly Interest Rate	Yearly Interest Rate
2005	.4166%	5.0%
2006 - 2015	.75%	9.0%

Interest charges on delinquent contributions and penalty charges on delinquent reports are separate and distinct. If you are unable to pay a quarterly report in full on the due date, you can avoid penalty charges if the report is filed on time. Interest charges will continue to accrue on any unpaid contributions balance until it is paid in full.

Penalty for Dishonored Checks and Failed Electronic Payments

Any check that is subsequently dishonored by the bank upon which it is drawn or any payment by electronic transfer that is not credited upon transmission is subject to penalty. The dishonored remittance penalty is 10 percent of the remittance amount, up to a maximum of $1,000, with a minimum of $25 per occurrence.

Penalty for Non-Compliance with Electronic Filing Requirement

A penalty is assessed against any employer who is not in compliance with the electronic filing requirements, and does not have a department-approved waiver on file. The penalty is 10 percent of the total contributions payable for the quarter, with a minimum of $25 and a maximum of $250.