Most employers in the state are about to see an increase - 2011 will be the second consecutive year for increases – in unemployment insurance tax rates.
The upticks, said the state Employment Security Department in a recent release, are “due to an economic downturn that has set new records for unemployment benefits paid to jobless workers.”
The tax rates are calculated yearly using a formula established by state law.
“No one likes announcing that tax rates are going up, especially when the economy is still moving very slowly,” said ESD Commissioner Paul Trause.
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The average rate for 2011 is the highest since 1988 – this after the lowest rates in 40 years in 2009.
Next year’s rates will range from 1.33 percent to 6 percent, compared with 0.95 percent and 6 percent this year.
2011 average rates and increases among selected industries:
Health care and social assistance: 2.46 percent, up 0.43 percent
Accommodation and food services: 2.51 percent, up 0.46 percent
Food manufacturing: 3.6 percent, up 0.84 percent
Real estate: 3.2 percent, up 1.04 percent
Construction: 5.41 percent, up 1.53 percent