Construction unemployment tax is the applicable employer percentage applied to taxable wages, so use both figures in your bid labor estimate.
Key takeaways for your bid labor estimate
The five figures to track are the beginning rate, experience bounds, construction floor, wage base, and a calculation example.
Beginning rate. North Carolina sets a one percent (1%) contribution rate for beginning employers until their account has been chargeable with benefits for at least 12 calendar months that end on July 31 immediately preceding the computation date, according to North Carolina General Assembly.
Experience bounds. The minimum contribution rate is six-hundredths of one percent (0.06%), according to North Carolina General Assembly.
Construction floor. For contribution periods beginning on or after January 1, 1998, the standard contribution rate for employers engaged in construction is whichever is greater: the computed industry average or two and seven-tenths percent, according to Ohio Laws and Administrative Rules.
Wage base. The taxable wage base for 2026 is $44,000, according to Unemployment Insurance Minnesota.
Example rate. A sample combined rate adds the experience rate and base tax rate together (1.90% + .40% = 2.30%), according to Unemployment Insurance Minnesota.
Compare the unemployment rate and contribution period in one current bid estimate with your employer rate determination, and label any sample figures that were copied into it. For more, see employer tax figures to copy before you lock the hour.
Construction unemployment tax rates: which figures belong in bids
An employer must contribute an amount equal to the applicable percentage of the taxable wages paid to employees for services performed in the state, according to North Carolina General Assembly. This rule defines the contribution as a percentage applied to taxable wages rather than a flat dollar amount for each worker. When building a labor estimate, the two variables that drive the unemployment cost are the specific percentage assigned to your account and the total wages subject to that tax. The taxable wages figure also depends on the jurisdiction’s wage base limit, which caps the amount of pay subject to the tax.
Do not substitute a generic labor-burden percentage for these two specific inputs. The contribution is calculated on the taxable wages you actually pay during the calendar year, not on total payroll or gross revenue. If your estimate uses a blended rate, verify that it reflects the applicable percentage for your specific contribution period. The obligation covers wages paid for services performed in the state, so out-of-state work may fall outside this specific calculation. Keep the rate and the wage base separate in your spreadsheet so you can adjust either variable if your determination changes.
What the figures measure and which dates are supplied
Ohio Laws and Administrative Rules states that once a rate of contribution has been established for a contribution period, that rate shall remain effective throughout such contribution period, except as provided in division (D) of section 4141.26 of the Revised Code Ohio Laws and Administrative Rules. This rule means the rate is fixed for the duration of the period rather than fluctuating within it.
Unemployment Insurance Minnesota reports that all 2026 Unemployment Insurance Tax Rate Determinations were sent out by U.S. mail to Minnesota employers on or before December 15, 2025 Unemployment Insurance Minnesota. That is the mailing deadline reported for these determinations.
Because rates are effective for a defined period and determinations are mailed on a specific schedule, you must identify the applicable contribution period before copying a rate into your estimate. Verify that the rate you are using corresponds to the exact period of the work being bid. Do not assume a rate from a previous period applies to a new contribution period without checking the effective dates.
Confirm the contribution period matches your bid schedule and verify you have the correct determination letter for that period. If you are using a sample rate, label it clearly as a sample and not your assigned rate. Check the mailing date against your current date to ensure you have the most recent determination available for the 2026 period.
State unemployment figures reference table
Compare your employer rate with the construction provision
Ohio Laws and Administrative Rules sets a construction standard rate floor. For contribution periods beginning on and after January 1, 1998, the rate for employers engaged in the construction industry is the average contribution rate computed for the construction industry or a rate of two and seven-tenths percent, whichever is greater, according to Ohio Laws and Administrative Rules. Whichever figure is greater sets the standard construction rate, so two and seven-tenths percent is a minimum.
North Carolina General Assembly specifies experience rate rounding limits. The contribution rate for an experience-rated employer is determined in accordance with a table and then rounded to the nearest one-hundredth percent (0.01%), subject to minimum and maximum contribution rates, according to North Carolina General Assembly.
Ohio Laws and Administrative Rules defines experience rate qualification. A contributing employer qualifies for an experience rate only if there have been four consecutive quarters, ending on the thirtieth day of June immediately prior to the computation date, throughout which the employer's account was chargeable with benefits, according to Ohio Laws and Administrative Rules.
Check your specific employer rate determination against these provisions before entering it into your bid labor estimate.
Read the Minnesota example without adopting its sample rate
Unemployment Insurance Minnesota limits the taxable wage base to the first $44,000 in wages paid to each employee in 2026, according to Unemployment Insurance Minnesota. The publisher’s calculation example adds a New employer/Experience rate of 1.90% and a Base tax rate of .40% to reach a combined rate of 2.30%, according to Unemployment Insurance Minnesota. To use this figure in a calculation, the example converts the 2.30% sum from a percentage amount to a decimal amount by dividing 2.30 by 100, resulting in .023, according to Unemployment Insurance Minnesota.
The page separately states that the additional assessment for 2026 is 14.00%, according to Unemployment Insurance Minnesota. This assessment is distinct from the combined rate example provided in the same text. Do not copy the 2.30% example rate into your bid labor estimate as an assigned employer rate, because the example is a calculation illustration rather than a determination for every firm. Verify that your own employer rate determination matches the contribution period before applying any percentage to the $44,000 wage base limit. Label any sample figures copied from this example clearly in your estimate to distinguish them from your specific tax liability.
Limits when carrying these figures into your labor estimate
Treat unemployment contributions as an employer cost in your bid labor estimate (see employer payroll tax rules). According to North Carolina General Assembly, an employer may not deduct the contributions due in whole or in part from the remuneration of the individuals employed. Do not assume this restriction applies to every jurisdiction or firm.
Washington State Legislature provides similar constraints for its jurisdiction. According to Washington State Legislature, contributions shall become due and be paid by each employer to the treasurer for the unemployment compensation fund, and shall not be deducted, in whole or in part, from the remuneration of individuals in employment of the employer. The rate at which these contributions accrue and become payable is established pursuant to chapter 50.29 RCW, with exceptions for employers described in RCW 50.44.010 who properly elected payments in lieu of contributions, and for employers required to make such payments.
When building your estimate, ensure the unemployment tax input is added to the labor cost, not subtracted from the worker's wage. The figures you carry must reflect the employer's liability. Verify that your employer rate determination aligns with the applicable period before finalizing the bid.
Label any sample figures copied into your estimate clearly. If you use a rate from a different jurisdiction or a sample calculation, identify it as such. Do not apply one publisher's rule as the rule everywhere. Next step: pull your current employer rate determination, confirm its contribution period, and compare it with your bid schedule before you finalize the bid.
FAQ: choosing unemployment inputs for construction bids
What construction unemployment tax rates should I use in a bid estimate?
Use the applicable employer percentage of taxable wages as defined by the state statute. North Carolina General Assembly requires contributions equal to the applicable percentage of the taxable wages paid during the year according to North Carolina General Assembly.
Does Ohio's two and seven-tenths percent standard rate automatically apply to my construction company?
No, the rate is the greater of the construction industry average or two and seven-tenths percent for periods beginning on and after January 1, 1998. Ohio Laws and Administrative Rules states the rate for construction employers is the average contribution rate computed for the construction industry or a rate of two and seven-tenths percent, whichever is greater according to Ohio Laws and Administrative Rules.
How much of each employee's wages is taxable in Minnesota for 2026?
Only the first $44,000 in wages paid to each employee in 2026 is taxable. Unemployment Insurance Minnesota specifies the taxable wage base for 2026 is $44,000 according to Unemployment Insurance Minnesota.
Can unemployment contributions be deducted from employee pay in North Carolina or Washington?
No, both states prohibit deducting contributions from employee remuneration. North Carolina General Assembly states an employer may not deduct contributions due in whole or in part from the remuneration of the individuals employed according to North Carolina General Assembly.
Is Minnesota's 2.30 percent calculation example my employer tax rate?
No, it is a published example of adding a new employer rate and base rate. Unemployment Insurance Minnesota illustrates adding the New employer/Experience rate and the Base tax rate together (1.90% + .40% = 2.30%) according to Unemployment Insurance Minnesota.