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Utah Unemployment Insurance Update

January 1st, 2007 Posted by Mark

The rules in the state of Utah when it comes to who is liable for unemployment insurance taxes may be a little bit more clear cut. When it comes to any business, the rule is that all you have to pay is more than $1 in wages in a calendar quarter. So basically, if you have one employee and pay him anything, then you are liable for unemployment insurance taxes.

Another way to become liable in the Utah unemployment insurance system is to acquire a business from an employer that was already liable under the Utah Employment Security Act. The two other main exceptions to these rules, though, are if you are an agricultural company, or if you are dealing with domestic servants. In the case of the agricultural employers, you have to pay more than $20,000 in wages in a calendar quarter to become liable, or employ 10 or more workers in 20 weeks over the course of a year.

When it comes to domestic workers, which you may or may not have at home (say, a babysitter), the rule in Utah is similar to the rules we have seen in many other states. That is, you could be liable for the unemployment insurance benefits of your domestic workers if you have paid them more than $1000 in any calendar quarter.

Oh, and I forgot nonprofits. If you are a legitimate nonprofit employer, the rule for you is that you have to have four or more employees working for you in 20 weeks over the course of the year in order to be liable for their unemployment insurance taxes.

All of this sound confusing? If so, just remember that the key is always registering with the state once you become a new employer. You can do so online at the state’s unemployment insurance Web site, or the old fashioned way, by telephone, fax, or mail. Either way, once you register with Utah, they will surely tell you whether or not you are liable.