For the sixth consecutive year, Utah’s Division Workforce Services has announced that Utah employers in 2019 will pay less unemployment insurance tax than the previous year in. Utah is projected to collect $156 million, which is approximately $198 million less than the $354 million in taxes collected in 2013 when collection was at a peak.{mprestriction ids="1,3"}
The majority of Utah’s employers will continue to receive the minimum unemployment insurance tax rate for the 2020 calendar year, the Utah Unemployment Insurance Division also announced. 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 saw 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.”{/mprestriction}
