The U.S. Department of Labor has released its annual Significant Measures of State UI Tax Systems Report reviewing state unemployment insurance financing for 2015.
On average UI taxable employers paid $370 per employee in state UI taxes. Other important points from the report include:
- Thirty-seven percent of taxable employers paid the lowest tax rate in state rate schedules, (four states had a 0% tax rate assigned to those employers).
- Seven percent of taxable employers were assigned the highest tax rate.
- On average the state average tax rate was 23% below the DOL recommended state Minimum Adequate Financing Rate.
- Six percent of the total benefits paid were made to claimants that were laid off from firms that went out of business.
- Eight percent of total benefits were paid to claimants who were laid off from a non-taxed reimbursable employer (Federal, state, or local government, or non-profit organization).
States with the highest average per covered employee cost (not including alternative financing debt service or FUTA tax payments) included:
Rhode Island $714
New Jersey $709
New Mexico $522
States with the lowest average per covered employee cost:
South Dakota $115
New Hampshire $151
States with average tax rates most above the level recommended by US DOL for adequate financing included:
States with average tax rates most below the level recommended by US DOL for adequate financing included:
Virgin Islands -72.2%
New Hampshire -57.0%
South Carolina -49.6%
The US DOL guidelines assist with comparison of states, although individual state financing can vary significantly and still be sufficient to assure that funds are available to make unemployment compensation payments when due.