MD Employer Unemployment Insurance Rate to Drop in 2016

Headlines ,

Growing balances in the State’s Unemployment Insurance Trust Fund will trigger lower tax rates for employers in 2016. Since most employers pay the minimum unemployment insurance tax rate, many employers will see a 50 percent reduction in unemployment insurance tax payments, from $51.00 to $25.50 per employee per year.

Fund balance levels in the State’s Unemployment Insurance Trust Fund are measured on October 1 annually and determine the tax table that is effective for the next calendar year. Falling balances trigger higher tax rates, while rising balances allow for lower rates. Maryland employers will now be subject to the lowest tax table for 2016.