Newsroom

New Legislation Raises Taxable Wage Base

Jul 16, 2009

The Tennessee General Assembly recently passed legislation to prevent the state’s Unemployment Insurance Compensation Trust Fund from becoming insolvent as well as to avoid the necessity to borrow funds from the federal government in order to continue paying benefits to Tennessee’s unemployed citizens.  The new law raises the taxable wage base from $7,000 to $9,000 and is retroactive to January 1, 2009.  It also adds a temporary additional fee of 0.6 percent to the premium rate on Tables 1, 2 and 3. 

If you are an employer in the state of Tennessee, you should have received this letter from the State.  In addition to the letter, you should have received a bill for the 1st quarter increase in tax due to the premium rate increase. 

Please feel free to call the Crosslin & Associates tax department at (615) 320-5500 if you have any questions regarding this tax increase.  We appreciate your business.

Sincerely,

Crosslin & Associates Tax Department

Rodney Brower, Tax Principal
Richard Winstead, Tax Principal

 
Under requirements imposed by the IRS, we inform you that, if any advice concerning one or more U.S. federal tax issues is contained in this communication (including any attachments), such advice was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matter addressed herein.