Maryland Governor Larry Hogan announced yesterday a significant reduction in the state’s unemployment insurance taxes due to a high balance in the unemployment trust fund.
“Due to the strong growth of the Unemployment Insurance Trust Fund, we are pleased to be able to let [employers] know that the cost of unemployment insurance in Maryland will be reduced. This is a real win for … the state as a whole,” remarked Hogan.
Since the beginning of 2015, Maryland’s Unemployment Insurance Trust Fund has grown by more than $125 million to $983 million. This means that many Maryland employers will experience a 50 percent reduction in unemployment insurance taxes from $51 to $25.50 per employee per year. (Most Maryland employers pay the minimum tax rate which is currently $51 per employee.) Under the new table, the highest rate paid will be $127.50.
“The unemployment tax rate reduction is a sign of Maryland’s improving business climate that will allow employers the opportunity to thrive and create jobs as we work together to strengthen our economy,” said Secretary of the Department of Labor, Licensing and Regulation Kelly M. Schulz.
In Maryland employers only pay taxes on the first $8,500 in wages. The only exception to this is for 501(c)(3) organizations which are not required to pay the unemployment insurance tax but merely reimburse the state for any unemployment claims for which they may be liable.