Division of Unemployment Insurance releases 2025 tax schedule

The Delaware Division of Unemployment Insurance recently announced new tax schedules for 2025, established under House Bill 433. The tax schedule to be used will be determined by the calculation of the average high-cost multiples for the Delaware unemployment insurance trust fund.

The AHCM is a commonly used actuarial measure of unemployment insurance trust fund solvency and strength. In other words, it represents the relationship between the money currently in the trust fund and the predicted payout of unemployment benefits.

For example, an AHCM of 1.0 indicates the state is expected to be able to pay one year of UI benefits using the money already in its trust fund. HB 433 states that if the AHCM is greater than or equal to 1.0, employers will be assigned a basic assessment rate in accordance with Schedule A of the Assessment Rate Schedule table. If the AHCM is less than 1.0, employers will be assigned a basic assessment rate in accordance with Schedule B of the Assessment Rate Schedule table.

“The current AHCM is .91, and as a result, Schedule B is in effect for 2025. The minimum basic assessment rate is 0.4%, and the maximum basic assessment rate is 5.4%,” said Darryl M. Scott, director of the Division of Unemployment Insurance, Delaware Department of Labor. “This is the first time in three years there has been a change in the employer tax schedule.”

House Bill 433 establishes the new employer rate of 1%, the delinquent employer assessment of 6.3%, and the taxable wage base of $12,500 for 2025.

In addition to the basic assessment rate, all employers – new, rated, and delinquent – will pay the supplemental Operations and Technology Assessment Rate of 0.2%. The Operations and Technology Assessment appears as Supplemental Rate on the employer’s Notice of 2025 Unemployment Insurance Assessment Rate letter. Letters were mailed the week of Jan. 20.

Employers can submit questions and appeals of their assessment rate in writing by U.S. mail to 4425 N. Market St., Wilmington, DE 19802, or by emailing DOL_UI_Employer_Tax_Questions@delaware.gov using Tax Rate Appeal in the subject line.