As a business owner, one of the most important ongoing cost considerations is unemployment insurance benefits for your employees. If possible, you want to be in a situation where you’re paying the lowest weekly maximum benefit to minimize cost.

It’s important to note that unemployment insurance rates differ from state to state because each state has unique tax laws. Unfortunately, state unemployment insurance tax laws are a mystery to most new business owners. That being said, it’s a critical number to know because it’s the only tax rate you have control over.

We’ve studied unemployment insurance rates by state to help you discover which states have the lowest maximum weekly benefit.

Unemployment insurance rates differ from state to state, and you can find specific info here on the Unemployment Tracker map. You’ll notice that there are a handful of states under $300, which are: Mississippi, Arizona, Alabama, Florida and Tennessee.

You’ll also need to know how to calculate the maximum weekly benefit rates across states. Unemployment taxes are calculated on “base wages,” which are set independently by each state. The base wage is then multiplied by a tax rate set by the state. For example, California’s base wage is $7,000 per year, with an unemployment tax multiplier of 3.4%. This multiplier never goes down but will go up if there are successful unemployment claims against your business.

Of the states we mentioned above, Mississippi clocks in with the lowest weekly benefit rate at $245 per week. Alabama is next at $265, followed by Florida at $275. You’ll want to reference the charts and utilize the base wage calculation to make sure you’re paying the least maximum weekly benefit possible.

By knowing the lowest unemployment insurance rates by state, you’ll be able to optimize your unemployment benefit expenditure and give your business more room to grow.