Unemployment Tax Rates

Reporting and Filing

Unemployment Tax Rates

In Mississippi, the tax rate for a start-up business is 1.00% the first year of liability, 1.10% the second year of liability and 1.20% the third and subsequent years of liability until the employer is eligible for a modified rate. These rates do not include the Workforce Investment and Training contribution rate that might be applicable for the rate year. If the organization acquired a business that is already liable for unemployment taxes in Mississippi, the organization may be immediately eligible for a modified tax rate. This rate may be higher or it may be lower than the new employer rate.

A modified rate is a rate based upon the ratio of benefits charged to an employers’ account to taxable wages paid by the employer, (benefits charged divided by taxable wages paid), plus the general experience ratio of the whole state unemployment program. The general experience ratio consists of items such as charges to employers who have closed their business, charges to employers who are bankrupt, excess charges to employers whose tax rate exceeds the maximum tax rate and a solvency factor to ensure the unemployment trust fund remains able to sustain the payment of unemployment benefits.

Your tax rate will vary between .2 percent and 5.4 percent, due to a number of factors; however no employer eligible for a modified rate will have a tax rate of less than the general experience ratio for the year. You may contact your local UI tax field representative to secure your tax rate for the current tax year or for a previous tax year.

Click here to find your local UI Tax Field Rep.