Each employee earns $6,000 per year. . 2.2.5 Relative, Service by Under [Texas Workforce Commission] Section 201.065: In this subtitle, employment does not include: Appendix VI, Excluded Employee Status for State of Texas Unemployment Tax (SUTA) Payments | Texas Health and Human Services All or part of the organization, trade, business, or workforce of another employer is acquired. For state unemployment tax purposes, only the first $9,000 paid to an employee by an employer during a calendar year constitutes "taxable wages." Please remember that the income tax code is very complicated, and while we can provide a good estimate of your Federal and Texas income taxes, your actual tax liability may be different. Equal opportunity is the law. Texas; Data Series Back Data July 2022 Aug 2022 Sept 2022 Oct 2022 Nov 2022 Dec 2022; Labor Force Data. Employers will receive an assessment or tax rate for which they have to pay. All estimates are subject to revision. An overwhelming bipartisan coalition of lawmakers passed the billwhich drew on Texass share of American Rescue Plan fundsduring the third special session of the legislature. The seasonally adjusted Texas unemployment rate for January 2022 was 4.8 percent, unchanged from a revised rate of 4.8 percent from December 2021. New employer rates are assigned based on industry average. Pennsylvania and Virginia don't tax unemployment benefits, so residents in those states don't . Hit OK. The wages attributable to the acquired part of the organization, trade or business must be separate and distinct from other wages of the predecessor employer and must be solely attributable to services provided on behalf of the acquired part of the organization, trade, or business. Employers Quarterly Wage Report Filing Options, Determine Whether You Need to Establish an Unemployment Tax Account. Including federal and state tax rates, withholding forms, and payroll tools. 2022 Tax Rates. A total of 172 areas had jobless rates of less than 3.0 percent and 2 areas had rates of at least 10.0 percent. This rate is unique to your business. Employer tax liability differs for each type of employment. Equal opportunity is the law. If the amount of benefits paid is less than the contributions paid, the excess contributions are deducted. All rights reserved. The standard FUTA rate in 2022 is 6%, with a taxable wage base of $7,000 (per employee) or taxable wages up to $7,000. Unemployment Insurance tax rates are computed for taxed government employers as a group. To receive notifications aboutTWCprograms and services subscribe to ouremail updates. Texas Workforce Commission Values: Community, Responsibility, Innovation, Accountability, Commitment to Excellence and Partnership. Under Taxes, click State Taxes ( sample screenshot CA ). The taxes support the states Unemployment Compensation Fund, a reserve from which unemployment benefits are paid to eligible workers who are unemployed through no fault of their own. Some states refer to SUTA as State Unemployment Insurance (SUI) or Reemployment Tax. The state that paid your unemployment benefits should send you a Form 1099-G showing how much . December marked the 14th consecutive record employment high in Texas, after the state first surpassed the pre-COVID level in November 2021. The Texas Labor Market & Career Information Data for June is scheduled to be released on Friday, July 22, 2022, at 9:00 a.m. (CDT). Also you can get the first pay stub for free. Create pay stubs with accurate tax calculations with 123PayStubs. See the Instructions for Form 940 to determine the credit. Leisure and Hospitality added 5,700 positions. Equal Opportunity Employer/Program The 2023 state personal income tax brackets are updated from the Texas and Tax Foundation data. This . | CCPA. SUTA, the State Unemployment Tax Act, is the state unemployment insurance program to benefit workers who lost their jobs. TWC has launched a new way for customers to communicate with the agency. Through the power of new initiatives like Texas Interns Unite!, we look forward to creating career opportunities for our future workforce and keeping Texas the best place to do business.. read more Each month of record employment in Texas creates more opportunities for success for our workforce and employers alike, said TWC Chairman Bryan Daniel. For detailed information see Reporting & Determining Taxable Wages, Employers Quarterly Wage Report Filing Options and Payment Options for Unemployment Tax. These rates do not apply to government employers who have elected to be reimbursing employers rather than taxed employers. Rules for Unemployment Insurance Tax Liability. The Texas Workforce Commission (TWC) announced that the agency sent the wrong insert with the 2022 state unemployment insurance (SUI) tax rate notices, but the notices themselves are correct. For questions, compliments or complaints, call 800-628-5115. If you received unemployment benefits in 2022 you should receive Form 1099-G by the end of January. TWC has launched a new way for customers to communicate with the agency. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. . Add the Rate and ensure to enter the backdated Effective Date. Employees are exempt from FUTA, so they do not pay this tax. See Domestic Employment for information about unemployment tax and domestic employee wages including employer registration requirements and options for reporting wages and paying taxes. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Our weekly newsletter provides insights on Texas politics, the economy, and Austin local news. We refer to them as "liable employers.". If you're a new employer, your state assigns you a new employer rate until you file unemployment taxes for a certain period of time. 2011 Texas Workforce Commission Sitemap Policies Open Records Report fraud: 800-252-3642, Click here to speak with our Also, some states provide exemptions from paying SUTA tax for nonprofits and businesses which employ fewer employees. Each state has a range of SUTA tax rates ranging from (0.65% to 6.8%). The Unemployment Obligation Assessment Rate has increased from 0.00% to 0.03%. The overall unemployment tax has increased 30%, with tax rates ranging between 0.75% and 10.39%. A partial transfer of experience is possible when: The successor employer must acquire a distinct and separate part of the organization, trade, or business that is capable of operating independently and separately from the predecessor employer. Texas has added a total of 687,500 positions since January 2021. Lower UI tax rates encourage hiring and help continue to expand career opportunities for Texans, while still providing unemployment compensation to those who qualify.. Texas Unemployment Insurance. Auxiliary aids and services are available upon request to individuals with disabilities. This is lower than the long term average of 5.96%. Now Accepting W-2, 1099-NEC & 1099-MISC for the 2021 Tax Year. 'With more than 650,000 jobs added in the past year, career opportunities for Texans continue to grow, said TWC Commissioner Representing Labor Albert Trevio. Your state sets your SUI rate. SUTA rates range from 0.725% - 8.65% for 2023. Our upcoming GRACE Conference aims to showcase the value of hiring second chance individuals to bolster our Texas economy.. TWC calculates experience-rated employers tax rates as of October 1 to be effective for the following calendar year, and mails notices of the rates to employers in December. The table below shows the history of governmental tax rates for the last ten years. Content Section: Document Center. Virtual Assistant, Apply for Unemployment Benefits & Request Payment, Learn About Unemployment Benefits & Appeals, Learn About Vocational Rehabilitation Services, Vocational Rehabilitation Business Relations, Vocational Rehabilitation Services, including Blind Services (VR), Independent Living Services for Older Individuals who are Blind (OIB), Post Jobs & Find Employees at WorkInTexas.com, Other resources from Employer Commissioner, Vocational Rehabilitation Providers' Resources, Vocational Rehabilitation for Youth & Students. Media Contact: Cisco Gamez An employers General Tax Rate may be impacted by benefits paid to former employees and charged to the employers account. However, the unemployment obligation assessment rate, which will be used to cover any federal interest due as of September 30, 2022, went down to 0.01% from 0.03% for 2021. New employers should use the greater of the average . You can pay extras to employees in addition to . Virtual Assistant, Apply for Unemployment Benefits & Request Payment, Learn About Unemployment Benefits & Appeals, Learn About Vocational Rehabilitation Services, Vocational Rehabilitation Business Relations, Vocational Rehabilitation Services, including Blind Services (VR), Independent Living Services for Older Individuals who are Blind (OIB), Post Jobs & Find Employees at WorkInTexas.com, Other resources from Employer Commissioner, Vocational Rehabilitation Providers' Resources, Vocational Rehabilitation for Youth & Students. The taxable wage base increases from $27,000 to $28,700 in 2022. thrive, and remain successful in the great . Wages considered in the computation of taxes are defined under the Federal Unemployment Tax Act, 26 U.S.C. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. AUSTIN - In December 2022, Texas added 29,500 positions, reaching a total of 13,705,500 nonfarm jobs in Texas. Your Unemployment Insurance (UI) and Employment Training Tax (ETT rates are combined on the Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088). Today, employers must pay federal unemployment tax on 6% of each employee's eligible wages, up to $7,000 per employee. Employers newly liable for state unemployment tax who do not acquire compensation experience from a previously liable employer begin with a predetermined tax rate set by the Texas Unemployment Compensation Act (TUCA). Texas: 2.7% or the industry average rate, whichever is greater: 0.23% - 6.23%: Utah: Varies . The rates include a replenishment tax rate of 0.2%, up from 0.18% in 2021; an obligation assessment rate of 0.01%, down from 0.03%; and an employment and training investment assessment rate of 0.1%, which is unchanged. Medicare - 1.45%. 101 E. 15th St Rm 514 The Alabama 2023 SUI tax rates were dated December 13, 2022. For detailed information on what are taxable wages that a liable employer must report, as well as how wages are reported, see Reporting & Determining Taxable Wages. The wage base also went up from $13,600 to $17,000 and is set to increase to $20,400 in 2023, $23,800 in 2024, $27,200 in 2025, and $30,600 in 2026. Texas labor market continues to grow and change with the times, and TWC is here to provide our workforce with the resources needed to succeed, said TWC Commissioner Representing Labor Julian Alvarez. Assume that your company receives a good assessment, and your SUTA tax rate for 2019 is 2.7%. State unemployment tax is a percentage of an employee's wages. Your email address will not be published. Equal opportunity is the law. In 2022, more than 67% of Utah's employers qualified for the minimum contribution rate of approximately $124 per employee per year. Virtual Assistant, Apply for Unemployment Benefits & Request Payment, Learn About Unemployment Benefits & Appeals, Learn About Vocational Rehabilitation Services, Vocational Rehabilitation Business Relations, Vocational Rehabilitation Services, including Blind Services (VR), Independent Living Services for Older Individuals who are Blind (OIB), Post Jobs & Find Employees at WorkInTexas.com, Other resources from Employer Commissioner, Vocational Rehabilitation Providers' Resources, Vocational Rehabilitation for Youth & Students. For more information, see Definition & Types of Employment. For details on TWC and the services it offers in coordination with its network of local workforce development boards, call 512-463-8942 or visit www.texasworkforce.org. There are seven federal income tax rates in 2022: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. This rate will again change as the business grows, depending on the number of unemployment claims made to the state by workers who lose their jobs. Texas Unemployment Tax Rate Range Remains the Same. By setting this tax rate, TWC aims to support employers ability to continue growing their businesses and the Texas economy, while ensuring trust fund operations. would incur an estimated deficit of $5.4 billion for tax years 2021 and 2022." . The number of unemployment claim . To access this and more employment data, visitTexasLMI.com. If you have a question about an individual chargeback claim, include your account number, the unemployment benefit claimant's Social Security number and the initial claim date, and send the request to: Texas Workforce Commission Depending on the state your business is based in, you may also owe state unemployment taxes. The 2023 state personal income tax brackets are updated from the Texas and, Texas tax forms are sourced from the Texas. In this article, we will be seeing more about the SUTA tax. Employers can confirm their 2022 SUI tax rate notice information and view UI benefit chargeback and voluntary contribution information online via the TWC's Unemployment Tax Services (UTS) system by going here. (U.S. Department of Labor, Comparison of State Unemployment Laws, 2020, state law information webpage; email response to inquiry.) For details on TWC and the services it offers in coordination with its network of local workforce development boards, call 512-463-8942 or visit www.texasworkforce.org . Texas Workforce Commission Values: Community, Responsibility, Innovation, Accountability, Commitment to Excellence and Partnership. TWC has launched a new way for customers to communicate with the agency. Massive changes have been implemented in Colorado. "setting the 2022 ui tax rate with no increase from last year helps texas employers to better focus resources on innovations that create more jobs," said twc chairman bryan daniel in the release. Three major industries surpassed their pre-COVID employment levels for the first time in May 2022 Construction, Manufacturing, and Leisure and Hospitality. TWC is dedicated to fostering new programs throughout the state to help Texas employers train their current and future workforce for their specific and unique business needs, said TWC Representing Employers Aaron Demerson. This decision to keep taxes low is great news for our Texas workforce, said TWC Commissioner Representing Labor Julian Alvarez. The Texas Unemployment rate most notably increased to 9.6% in 1986 due to a large number of commercial bank failures in the state. Only then the State will send details about the unemployment tax rate to the employer each year. A factor of the rate computation, the flat UI replenishment tax rate, increased to 0.20% for 2022, up from 0.18% for 2021. But in few states like Alaska, New Jersey, and Pennsylvania, the SUTA program requires contribution from both employers and employees. The Texas Workforce Commission is a state agency dedicated to helping Texas employers, workers and communities prosper economically. Under the Federal Unemployment Insurance Tax Act (FUTA), the 2022 federal unemployment insurance wage base is $7,000, the maximum tax is 6.0% and the maximum credit reduction is 5.4%, for a net FUTA deposit rate of 0.6%. Chargeable simply means that the employer could have been responsible for unemployment benefits paid to a former employee, it is not required that an unemployment claim be filed. due to the ongoing solvency of the UI Trust Fund, the 5.4 percent credit is applied to all accounts, making the tax rate 0.6 percent on the first $7,000.00 of wages paid to employees. The Texas Workforce Commission uses three employment categories: regular, domestic and agricultural. Thirty-six states and the District had jobless rate decreases from a year earlier. Texas Unemployment Rate is at 3.90%, compared to 4.00% last month and 4.80% last year. Unemployment Insurance Tax Rate Chart (FY 2023) . Here are the records: Total taxable FUTA wages (Form 940, line 7) $21,000.00: Taxable state unemployment wages: $ 8,000.00: Experience rate for 2022: 0.041 (4.1%) State unemployment tax paid on time: $100.00: State unemployment . Tap the Change or add new rate. The Texas Labor Market & Career Information Data for February is scheduled to be released on Friday, March 25, 2022 at 9:00 a.m. (CDT). Alabama Announcement Relating to 2023 Unemployment Tax Rates and Wage Base. Texas has added nearly 700,000 jobs since January 2021 and, while we cant predict the future, job activity and hiring efforts by Texas employers continues to grow.. | Privacy Policy
If you dont like it, unsubscribe any time. Unemployment tax rates vary year by year. 2011 Texas Workforce Commission Sitemap Policies Open Records Report fraud: 800-252-3642, Click here to speak with our The Texas seasonally adjusted unemployment rate declined for the first time in three months to 3.9 percent in December, logging the first month the rate fell below 4.0 percent since February 2020. The Oregon taxable wage base is increasing, however, for the third straight year to $47,700 - an 8.9% increase over 2021. In order to make a partial transfer of compensation experience, complete and submit the Joint Application for Partial Transfer of Compensation Experience Forms. Each state sets its own tax rate range, wage base (the amount of pay an employer needs to pay taxes on for each employee), and . You dont have to worry about calculating SUTA taxes by keeping up with these frequently changing laws anymore. Any taxable income exceeding $25 million is subject to the top marginal rate of 10.9 percent. Texas is one of seven states that do not collect a personal income tax. The national unemployment remained unchanged at 3.7%, but was still 0.5 points lower than in November 2021. Unemployment Tax Requirements for Organizations in Texas. Since your business has . Texas State Unemployment Insurance (SUI) Texas Wage Base: $9,000 for 2022. . To receive notifications about TWC programs and services subscribe to our email updates. All taxed government employers have the same rate in a given year. Texas UI program recently came under fire from Marika Cabral, an associate professor of economics at The University of Texas at Austin. Equal Opportunity Employer/Program 2011 Texas Workforce Commission Sitemap Policies Open Records Report fraud: 800-252-3642, Click here to speak with our The TWC chose again for 2022 to not include a deficit tax rate factor. use greater of the average rate for all employers in the NAICS code to which they belong or 2.7% for 2022. Each state has a range of SUTA tax rates ranging from (0.65% to 6.8%). In most cases an employer is not chargeable until their third quarter of paying wages. . The Texas Workforce Commission (TWC) has set unemployment insurance (UI) tax rates for 2022 that are the same as 2021, despite a $7.2 billion deficit in the states unemployment insurance trust fund caused by higher unemployment rates. The Texas Workforce Commission is a state agency dedicated to helping Texas employers, workers and communities prosper economically. Log in to access all of your BLAW products, Tax rates are to range from 0.31% to 6.31%. There is no taxable wage limit. Auxiliary aids and services are available upon request to individuals with disabilities. The wage base limit is the maximum threshold for which the SUTA taxes can be withheld. The TWC has stated that all notices of 2021 rates will be mailed no later than July 2, 2021. Texas Workforce Commission Values: Community, Responsibility, Innovation, Accountability, Commitment to Excellence and Partnership. The employee is not charged for unemployment taxes. To learn more about the reimbursing employer option, see Reimbursing & Government Employers. The yearly cost is divided by four and paid by quarter. State & Local Unemployment Rates ; Unemployment Research; Employment; National Employment ; . Due to the pandemic, many states' trust fund balances were decimated so they applied for an advance, or loan, to replenish it. The numerator is the amount of all benefits paid, less benefits paid and reimbursed from other sources. Unemployment Insurance tax rates for taxed government employers are determined by how much the group has withdrawn from the Unemployment Compensation Trust Fund in benefit payments to their ex-employees as compared to the amount of taxes that the group has paid. The operation of the organization or business is continued. Whether you are a large employer or small business, TWC is here at both the state and local level to support our Texas employers with training and hiring resources that will help you grow, thrive, and remain successful in the great state of Texas.. There is no maximum tax. Civilian Labor Force : Employment : Unemployment . As provided for under Texas law and rules (UI law section 204.048, UI Rule section 815.119), experienced-rated employers may within 60 days of the mailing date of the rate notice make a voluntary payment equal to some or all of the UI benefit chargebacks for the period ended September 30 used in computing the employer's tax rate for the next year. 2011 Texas Workforce Commission Sitemap Policies Open Records Report fraud: 800-252-3642, State Continues Streak of Positive Job Gains in First Month of 2022, Click here to speak with our | Terms of Use
Quarterly wage reports and taxes must be filed and paid by the last day of the month following the end of the calendar quarter. The state's unemployment rate has improved, . To receive notifications about TWC programs and services subscribe to our email updates. As of 2007, Texas generates supplemental tax revenue through a corporate gross receipts tax. The Texas Workforce Commission (TWC) announced that the agency sent the wrong insert with the 2022 state unemployment insurance (SUI) tax rate notices, but the notices themselves are correct. 0.24-8.12%. Those earning between $13,900 and $215,400 are subject to marginal tax decreases as the corresponding rates decreased from 5.9 percent and 6.33 percent to 5.85 percent and 6.25 percent, respectively. Maximum Tax Rate for 2020 is 6.31 percent. Your state's wage base is $8,000. TWC is here for all Texas employers large and small. For questions, compliments or complaints, call 800-628-5115. State unemployment tax is a term that refers to the state employment taxes employers must pay to support the unemployment insurance program. The annual contribution rate is expressed as a percentage. The unemployment tax rates for experienced employers in 2022 will range from 0.33% to 6.4% (0.33% to 5.4% in 2021). Employers dealing with frequent layoffs, and high employee turnover will have a higher SUTA tax rate as employees who lose their jobs will claim the unemployment benefits with the State. The current taxable wage base that Arkansas employers are required by law to pay unemployment insurance tax on is seven thousand dollars ($7,000) per employee per calendar year. We include an application for voluntary contribution with the annual tax rate notice for accounts that have been charged with unemployment benefits affecting their rate. For more information, see Reimbursing Government Employers Option below. Interim tax rates are based on an employers: After the completion of their first four chargeable quarters and any interim tax rate period, TWC assigns an experience tax rate for the employer. Any employer in Texas that falls under one or more of the following categories would be liable to pay unemployment taxes: An employing unit that's liable under FUTA and has Texas employees. For details onTWCand the services it offers in coordination with its network of local workforce development boards, call512-463-8942or visitwww.texasworkforce.org. Employer-paidUItaxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for workers who lose their jobs through no fault of their own. Here's how an employer in Texas would calculate SUTA: $9,000 taxable wage base x 2.7% tax rate x number of employees = Texas SUTA cost for the year. Each state has a standard SUTA tax rate for new employers, and it will be different for employers who are in the business for long. Specifically, the bill will assign the following unemployment tax rate tables through fiscal year 2024: Table C (rates range from 0.5% to 5.8%) for fiscal year 2022 (from July 1, 2021 through June 30, 2022); The Amarillo and Midland Metropolitan Statistical Areas (MSA) recorded the lowest unemployment rates among Texas MSAs with a not seasonally adjusted rate of 2.6 percent each in December, followed by Austin-Round Rock at 2.7 percent, then College Station-Bryan at 2.8 percent. 2011 Texas Workforce Commission Sitemap Policies Open Records Report fraud: 800-252-3642, Click here to speak with our This action is a result of the statutory authority of the . Click the Gear icon at the upper right corner and choose Payroll Settings. For questions, compliments or complaints, call 800-628-5115. Virtual Assistant, Apply for Unemployment Benefits & Request Payment, Learn About Unemployment Benefits & Appeals, Learn About Vocational Rehabilitation Services, Vocational Rehabilitation Business Relations, Vocational Rehabilitation Services, including Blind Services (VR), Independent Living Services for Older Individuals who are Blind (OIB), Post Jobs & Find Employees at WorkInTexas.com, Other resources from Employer Commissioner, Vocational Rehabilitation Providers' Resources, Vocational Rehabilitation for Youth & Students. are subject to the Texas franchise tax if their total annualized revenue exceeds the $1,230,000 threshold in either 2022 or 2023. Employers pay unemployment taxes at a New Employer rate until such time as they earn a rate based on their "experience" with unemployment. Fax: 512-463-8185 Deaf, hard-of-hearing or speech-impaired customers may contact TWC through the relay service provider of their choice. The Commission set the statesUIreplenishment tax rate to 0.20 percent, and the deficit tax rate to 0.0 percent. A preliminary look at the 2022 state unemployment taxable wage bases. The Texas Unemployment Compensation Act (TUCA) defines which employers must report employee wages and pay unemployment taxes. Media Contact: Angela Woellner Phone: 512-463-8556. . At the beginning of the year, you will receive a Determination of Unemployment Tax Rate (UC-603) (UC-603 Sample 345 KB PDF) advising you of your tax rate for the that calendar year. Whenever your SUI rate changes, you need to update it in payroll. Employers contribute to the state unemployment program by paying SUTA tax every quarter, depending on the SUTA tax rate and the Wage Base. Contact us by email or chat to get help easily. Most employers are required to pay Unemployment Insurance (UI) tax under certain circumstances. The Texas Unemployment Compensation Act (TUCA) applies to services individuals perform for wages, unless TWC deems otherwise. Job growth is a key component of our economic success., Likewise, TWCCommissioner Representing Employers Aaron Demerson said, This decision gives stability to ourUItax structure and ultimately will benefit all Texas employers. Review the PIT withholding schedule. This action is a result of the statutory authority of the Commission and was supported by funding from Senate Bill 8 (SB 8), passed during the 3rd Special Session of the 87th Texas Legislature and signed into law by Governor Abbott. Equal opportunity is the law. Jul 2022: Alternative Measures of Labor Underutilization in Texas - 2022 : Unemployment: News Release: Feb 2023: Minimum Wage Workers in Texas - 2017 : Employment, Pay: News Release: Jul 2018: Southwest Fatal Occupational Injuries by State : Workplace fatalities . For tax rate information for the last ten years, see the table below. Most of the states dont have an unemployment program for independent contractors or self-employed individuals. The three essential elements to the definition of employment are service, wages, and direction and control. Equal opportunity is the law. Subscribe to email updates to receive notifications about TWC programs and services. Required fields are marked *. Also of note, Information employment grew by 3,300 jobs. AUSTIN On November 23, 2021, the Texas Workforce Commission (TWC) set unemployment insurance (UI) tax rates for 2022 at a stable level to avoid burdening Texas businesses with a significant increase of taxes resulting from pandemic-related closures outside of their control. TWC is committed to providing the resources and programs needed to sustain this growth and keep the Texas economy thriving.. Create pay stubs for your employees and contractors in 3 simple steps. SB 8 also authorized the appropriation of roughly $7.2 billion for deposit to the state's UI trust fund to pay off the state's federal UI trust fund loan and return the UI trust fund to a level to hold the 2022 tax rates steady.
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