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 2019, Utah’s trust fund is ranked No. 7 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.
Source: U.S. Department of Labor, State Unemployment Insurance Trust Fund Solvency Report 2019, https://oui.doleta.gov/unemploy/solvency.asp.
EMPLOYER UNEMPLOYMENT INSURANCE TAX RATE
Because Utah’s trust fund is healthy, this benefits Utah employers by keeping tax rates low. In fact, the past several years have seen total employer taxes collected decrease. Based on the latest available data from 2018, Utah has the sixth lowest average employer unemployment tax rate per employee ($119) in the nation — well below the national average of $293. 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.
Source: U.S. Department of Labor, State Unemployment Insurance Tax Measures Report 2018, https://oui.doleta.gov/unemploy/sig_measure.asp.
When comparing the rankings of the top 10 states for trust fund solvency to their respective rankings for tax rates, only four states (Mississippi, Nebraska, South Dakota and Utah) are ranked in the lowest 10 for tax rates. Utah’s Unemployment Insurance Program is balancing the health of its trust fund with an appropriate employer tax rate to help ensure economic stability for Utah’s workforce, families and communities for years to come.
For more information about Utah’s Unemployment Insurance Program, visit jobs.utah.gov/ui.