Unemployment insurance tax sees biggest cut since '02

Gov. Chris Sununu ... announces rare drop in Unemployment Insurance taxes (Courtesy photo)

CONCORD - Today, Governor Chris Sununu and Department of Employment Security Commissioner George Copadis announced a 1.5 percent reduction in Unemployment Insurance taxes for all employers. The last time the Unemployment Insurance Trust Fund triggered a 1.5 percent tax reduction was during the 3^rd quarter of 2002.

"Today, more people are working in the State of New Hampshire than ever before," said Governor Sununu. "For the first time since 2002, employers will see a 1.5 percent reduction in their Unemployment Insurance taxes - a direct result of our pro-growth, pro-jobs agenda."

"New Hampshire's growing economy and low unemployment rates have meant fewer workers filing claims for unemployment benefits, and those that need to file are typically unemployed for fewer weeks," said Employment Security Commissioner George Copadis. "The Unemployment Insurance Trust Fund holds the tax contributions employers make that provide benefit payments to qualified unemployed workers. Employers pay different amounts depending both on their experience with unemployment claims assessed against their individual accounts and on the tax rate reductions triggered by different threshold levels of the fund. Because the Unemployment Trust Fund has reached levels not seen in more than 15 years employers will receive full statutory rate reductions later this year, while still maintaining Trust Fund solvency."

The Trust Fund is projected to stay over the $300 million trigger for every day of the 4^th quarter in 2018. The last time the Trust Fund was at or above the $300 million threshold providing employers with the 1.5 percent Unemployment Insurance tax reduction was the 3rd quarter of 2002. UI programs pay benefits to covered workers who become involuntarily unemployed and meet eligibility requirements.