Minor Taxes
Explore the complexities of minor taxes and their impact on payroll processing.
What are Minor Taxes?
Minor taxes are taxes related to a major tax type such as unemployment tax. In the payroll industry these minor taxes are commonly known as surcharges and assessments. They are often calculated separately in payroll but reported on the same tax return as the tax type under which they fall.
Minor Taxes in Console
If Minor taxes require an employer specific rate they will be surfaced in Console under the Taxes tab along with the State they are associated with. If these taxes do not appear separately, it is because they are associated with the larger Tax Type and the percentage or rate is not employer specific.
For Example, Texas Obligation Assessment will be included in the Unemployment total and not broken out specifically that is why it is not visible in Check Console.
For Example, Colorado Support Surcharge Rate will be requested for Colorado Employers (pictured below) and is visible in Console.
Exempting Minor Taxes
If there is a request to have a company or an employee exempted from a specific tax, be sure to understand if there is an associated minor tax that will also be exempted. For example, Family leave is often reported to the same agency office as unemployment. However, there are separate exemption requirements unrelated to unemployment. Be sure to confirm if the company’s request is specific to unemployment or PFML taxes.
In order to request an exemption, please send a ticket to Check Support.
Minor Taxes Chart
Jurisdiction | Tax Type | Minor Taxes (Listed Separately in Console and Admin) |
Federal | FICA | Social Security/Medicare |
Alabama | Unemployment | Employment Security Assessment |
Alaska | Unemployment | N/A |
Arizona | Unemployment | N/A |
Arkansas | Unemployment | N/A |
California | Unemployment | Employment Training Tax |
California | Disability | **While disability does not have a minor tax. Disability is commonly exempted when unemployment is exempted. |
Colorado | Unemployment | Solvency Surcharge/Support Surcharge |
Colorado | Paid Family and Medical Leave | N/A |
Connecticut | Unemployment | N/A |
Connecticut | Paid Family and Medical Leave | N/A |
Delaware | Unemployment | Training Tax |
District of Columbia | Unemployment | Administrative Funding Assessment |
District of Columbia | Paid Family and Medical Leave | N/A |
Florida | Unemployment | N/A |
Georgia | Unemployment | Administrative Assessment |
Hawaii | Unemployment | Employment & Training Assessment |
Hawaii | Disability | **While disability does not have a minor tax. Disability is commonly exempted when unemployment is exempted. |
Idaho | Unemployment | Administrative Reserve Rate/Workforce Development Training Surtax |
Illinois | Unemployment | N/A |
Indiana | Unemployment | N/A |
Iowa | Unemployment | Reserve Fund/Administrative Surcharge Tax |
Kansas | Unemployment | N/A |
Kentucky | Unemployment | Service Capacity Upgrade Fund Surcharge |
Louisiana | Unemployment | N/A |
Maine | Unemployment | Competitive Skills Scholarship Fund Unemployment Program (CSSF)/Administrative Fund (UPAF) |
Maryland | Unemployment | N/A |
Massachusetts | Unemployment | Workforce Training Fund/COVID Recovery Assessment Rate Varies |
Massachusetts | Unemployment Surcharge | Employer Medical Assistance/ |
Massachusetts | Paid Family and Medical Leave | N/A |
Michigan | Unemployment | Obligation Assessment Tax |
Minnesota | Unemployment | Workforce Development Fee/Additional Assessment/Federal Loan Interest Assessment |
Mississippi | Unemployment | Workforce Training Enhancement |
Missouri | Unemployment | N/A |
Montana | Unemployment | Administrative Fund Tax |
Nebraska | Unemployment | N/A |
Nevada | Unemployment | Career Enhancement Program |
New Hampshire | Unemployment | Administrative Contribution |
New Jersey | Unemployment | Employer/Employee SUI/Workforce Development/Supplemental Workforce/Health Care Subsidy Fund - Employee |
New Jersey | Disability | Employer SDI/Employee SDI**While disability does not have a minor tax. Disability is commonly exempted when unemployment is exempted. |
New Jersey | Paid Family and Medical Leave | N/A |
New Mexico | Unemployment | N/A |
New York | Unemployment | Re-employment Services Fund |
North Carolina | Unemployment | N/A |
North Dakota | Unemployment | N/A |
Ohio | Unemployment | N/A |
Oklahoma | Unemployment | Technology Fund |
Oregon | Unemployment | N/A |
Oregon | Family Leave | N/A |
Pennsylvania | Unemployment | Employer SUI/Employee SUI |
Rhode Island | Unemployment | Job Development Surcharge |
Rhode Island | Disability | **While disability does not have a minor tax. Disability is commonly exempted when unemployment is exempted. |
South Carolina | Unemployment | Contingency Assessment |
South Dakota | Unemployment | Investment Fee/Administrative Surcharge Fee /Trust Fund Surcharge |
Tennessee | Unemployment | N/A |
Texas | Unemployment | Obligation Assessment/Employment and Training Assessment |
Utah | Unemployment | N/A |
Vermont | Unemployment | N/A |
Virginia | Unemployment | N/A |
Washington | Unemployment | Employer Administrative Fund |
Washington | Paid Family and Medical Leave | N/A |
West Virginia | Unemployment | N/A |
Wisconsin | Unemployment | N/A |
Wyoming | Unemployment | N/A |
FAQs
What if I don't see a Minor Tax that the Customer is asking about?
If the state is visible and the specific minor tax isn't broken out, there is a good chance, it's included with one of the taxes listed above. However, you can always confirm what taxes will calculate by viewing a Payroll Preview report before approving payroll, or submitting a Support request to Check for confirmation.
Last updated on June 30, 2024