Governor Hassan Announces Drop in Unemployment Insurance Tax Rate for Employers
Press Release
As a result of a healthy Unemployment Compensation Trust Fund that had a balance of more than $250 million every day in the third quarter of 2014, Governor Maggie Hassan and Employment Security (NHES) Commissioner George Copadis announced a 0.5 percent reduction in the unemployment tax rate for all New Hampshire employers.
The reduced rate went into effect on Wednesday, October 1.
"With our unemployment rate at its lowest level since 2008, our Unemployment Compensation Trust Fund has experienced strong enough growth to trigger a tax reduction for all New Hampshire employers," Governor Hassan said. "Estimated to save employers more than $4.3 million in the next three months, this is great news for New Hampshire businesses and a clear sign of important progress, but we still have more work to do to support job-creating businesses, expand middle class opportunity and keep our economy moving in the right direction."
"I am thrilled to see the continued growth in our economy and as a result the continued growth in our trust fund," Commissioner Copadis stated. "New Hampshire has one of the lowest unemployment tax rates in the country, and this rate is getting even lower effective this week as every New Hampshire employer will see a 0.5 percent reduction, resulting in $4.3 million in real tax savings. I hope and expect to see continued reductions in 2015 as well."
The 0.5 percent unemployment tax reduction was triggered by New Hampshire's unemployment compensation law, which allows for three levels of reductions to employer tax rates as the Unemployment Compensation Trust Fund balance reaches certain levels and maintains that level throughout an entire quarter.
A 0.5 percent reduction is allowed if the trust fund equals or exceeds $250 million throughout the preceding quarter, a one percent reduction is allowed if the trust fund equals or exceeds $275 million, and a 1.5 percent reduction is allowed if the Trust Fund equals or exceeds $300 million.
In July 2013, Governor Hassan and Commissioner Copadis announced a reduction in employer unemployment tax rates through the elimination of the last 0.5 percent emergency surcharge enacted during the recession.
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