Governor Martin O’Malley today announced that Maryland employers will see a significant decrease in their unemployment insurance tax rates beginning in January. For calendar year 2014, unemployment insurance tax rates will drop from Table C to Table A, the lowest range of tax rates.
State law requires the Department of Labor, Licensing and Regulation (DLLR) to review the Unemployment Insurance Trust Fund each September 30. Employers pay unemployment insurance tax on the first $8,500 of each worker’s wages. Rates are based on six tax tables, ranging from the lowest (A) to the highest (F), and the rate is adjusted annually based on the balance of the Trust Fund. As a result of the economic downturn, Maryland employers faced the highest range of UI tax rates (Table F) in 2012. Last year, the rates shifted from Table F to Table C. In 2014, Maryland employers will see another significant decrease, going from Table C to Table A. Table A rates range from 0.3 to 7.5 percent of the first $8,500 of annual wages.
“The reduction in unemployment insurance tax rates is good news for Maryland employers, workers and the economy,” said Kathy Snyder, CCE, President/CEO, Maryland Chamber of Commerce. “Working together through the Unemployment Insurance Oversight Committee, business, labor and elected leaders have strengthened Maryland’s unemployment insurance system.”
The Chamber would like to once again thank Ron Adler of Laurdan Associates. Ron is the Chair of our UI Subcommittee, and he represents the Chamber on the UI Oversight Committee. The strength of Maryland’s UI system is a direct result of the work done by the Oversight Committee.
“Lower tax liabilities will have positive consequences for Maryland’s employers, workers, and the economy. They are the direct result of the prudent decisions made by Maryland business leaders, labor, the legislature, and the O’Malley Administration. Maryland is well-positioned to seize new economic opportunities,” Adler said.
Photo: (L to R): Governor Martin O’Malley; Maryland Chamber President & CEO Kathy Snyder, CCE; Chamber Chairman Tom Graham of Pepco Holdings, Inc. and Chamber UI Subcommittee Chair Ron Adler of Laurdan Associates.
Legislative Issues Tag: Employment Issues