Today, the Utah Unemployment Insurance Division announced the 2017 tax rates for Utah employers. In 2017, 75.8 percent of Utah's established employers will qualify for the minimum contribution rate of 0.2 percent or $66 per employee per year. Utah’s taxable wage base increased from $32,200 to $33,100 over the past year.
Experienced employers will see a modest decrease on average of 4.2 percent in their 2017 contribution rates compared to 2016 — with rates ranging from 0.2 percent to 7.2 percent. New employers will pay an industry average, ranging from 1.1 percent to 7.2 percent.
“Utah’s steady and strong economy over the past several years has enabled us to build up the fund to a healthy level, helping to ensure we can pay increased demand for benefits when the economy slows,” said Michelle Beebe, director of the Unemployment Insurance Division. “Employers that have stable workforces and fewer layoffs have lower rates. The best way to control unemployment costs is to re-employ Utah's skilled workforce.”
Employers contribute to the Utah Unemployment Compensation Fund to pay benefits to workers who become unemployed through no fault of their own. At the end of the last state fiscal year, the fund had a balance of $972 million — well within the statutorily desired level. This is also a significant improvement from the balance of $253 million just a few years ago.
Workforce Services paid record amounts of benefits during the Great Recession, and it has taken several years of strong economic growth to replenish the fund. Workforce Services will continue to monitor the fund and recommend appropriate changes to the State Legislature and Governor Herbert as warranted.
For information about the tools Workforce Services has available to help job seekers find employment, visit jobs.utah.gov or a local employment center. In addition, employers can post a job, find qualified workers and learn about controlling their unemployment costs on jobs.utah.gov.
About Unemployment Insurance Division
Utah's Unemployment Insurance Division provides economic stability to Utah's workforce, families and communities. Unemployed Utahns are invited to work with Utah's team of specialists to determine what benefits they may qualify for. Contributions collected from Utah employers, under the state unemployment tax, are used exclusively to pay benefits to unemployed workers who are able and available to seek and accept full-time work. For more information about Utah's Unemployment Insurance Division, visit jobs.utah.gov/department/ui.html.