Key Unemployment Tax Updates & Savings Opportunities

Nonprofit organizations must stay informed about key unemployment tax changes that could significantly impact their financial forecast and budgeting. Employers typically face their highest state unemployment insurance (SUI) tax contributions during the first two quarters of each calendar year.

First Nonprofit is helping new nonprofit members save an average of $153 per employee on unemployment taxes this year, offering additional benefits such as unemployment claims administration and HR tools to save even more. Contact First Nonprofit for a free, no-obligation savings evaluation to discover how much your nonprofit can save.

Here are the updates to unemployment insurance tax rates and wage bases effective 2025 (and some in 2026 and 2027) so far:

Connecticut

• The maximum SUI tax rate increased 19.1%.
• The taxable wage increased from $25,000 to $26,100.
• OVERALL IMPACT ON AVERAGE RATED EMPLOYER = INCREASE OF $110 PER EMPLOYEE

Massachusetts

• 2025 SUTA rates range from 0.83% to 12.65%. With the 2025 COVID Recovery Assessment Rate, they can range from 1.04% to 15.85%.

New York

• The taxable wage base increased from $12,500 to $12,800 and will rise again to $13,000 in 2026. After 2026, the wage base will be permanently adjusted on January 1 of each year to 16% of the state average annual wage.

Make sure your nonprofit is fully prepared and maximizes its savings opportunities. Visit First Nonprofit’s website today for more resources and expert guidance on managing your unemployment obligations effectively.