New data from the U.S. Department of Labor shows Utah’s Unemployment Insurance Program is healthy and thriving — benefiting Utah’s employers.
Contributions collected from Utah employers under the state unemployment tax are used exclusively to pay benefits to eligible unemployed workers. All receipts from this tax are deposited in the Utah Unemployment Compensation Trust Fund. For 2021, Utah’s trust fund is ranked No. 13 in the nation for solvency, meaning its current balance can sustain benefit payments to individuals who are unemployed through no fault of their own for more than a year.
EMPLOYER UNEMPLOYMENT INSURANCE TAX RATE
Because Utah’s trust fund is healthy, this benefits Utah employers by keeping tax rates low. Based on the latest available data from 2020, Utah has the eighth lowest average employer unemployment tax rate per employee ($106) in the nation — well below the national average of $277. Utah’s low tax rate allows employers to invest in their employees and businesses, which in turn helps to strengthen and grow Utah’s economy.
For more information about Utah’s Unemployment Insurance Program, visit jobs.utah.gov/ui.