UIA Rate Tax Reduction

The State announced that All employers will receive a Tax Reduction in their unemployment rate effective January 01, 2020.  This reduction is five months ahead of schedule.

The Obligation Assessment was a 10 year plan initiated in 2012 to repay the federal government, the $3.2 billion debt owed to the US Treasury.  To assist with paying the excessive number of Unemployment claims, the federal government loaned the state money.  In 2012 it was determined that the Obligation Assessment was necessary to gradually force all employers to assist in paying the debt back to the federal government.

Due to the growth in the state, more UIA revenue is now collected than originally expected.  The solvency of the state allows the Obligation Assessment to now be totally eliminated.  All employers will receive a $65 – $217 per employee tax savings.

Use the attached table to determine your 2020 savings.

Find your 2019 UIA Rate in the table.  Find your savings per employee and then multiple by your number of employees.

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