Utah collects less unemployment insurance for sixth consecutive year
By Brooke Porter Coles
For the sixth consecutive year, Workforce Services announced it will collect less in unemployment insurance taxes from Utah employers. Utah is projected to collect $156 million in unemployment insurance taxes, which is approximately $198 million less (a 56 percent reduction) than the $354 million in tax collected in 2013, when collection was at a peak.
The majority of Utah’s employers will continue to receive the minimal unemployment insurance tax rate for the 2020 calendar year. In 2020, approximately 75 percent of Utah’s established employers will qualify for the minimum contribution rate of approximately $36.60 per employee per year. Utah’s taxable wage base did see a slight increase from $35,300 to $36,600 over the past year.
The collected tax is deposited into the Utah Unemployment Compensation Trust Fund to pay benefits to workers who become unemployed through no fault of their own. Even with the continued reduction in taxes collected, according to the U.S. Department of Labor, Utah’s Unemployment Compensation Trust Fund is the seventh healthiest trust fund in the nation.
“Accurately calculated tax rates are critical to the solvency of the trust fund,” said Kevin Burt, director of the Unemployment Insurance Division. “The trust fund contributes to our state’s strong economy and supports both Utah’s dedicated employers and the strong workforce. I am proud of our skilled staff that works carefully to ensure only eligible individuals receive unemployment benefits and that Utah’s employers are provided with timely assistance.”
For information about the tools Workforce Services provides employers to assist with filing taxes and other required reports, visit jobs.utah.gov/ui/employer.
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