The majority of Utah’s employers will see a reduction in their unemployment insurance tax rates for the 2018 calendar year, the Utah Unemployment Insurance Division announced last week. In 2018, more than 75 percent of Utah’s established employers will qualify for the minimum contribution rate of approximately $34 per employee per year — a 48 percent decrease from 2017. Utah’s taxable wage base increased from $33,100 to $34,300 over the past year, the division said in a release.
For 2017, Workforce Services is projected to collect $185 million in unemployment insurance taxes, which is approximately $170 million less (a 47 percent reduction) than the amounted collected in 2013. This will mark the fourth consecutive year that Workforce Services collected less taxes from Utah employers.
Employers whose former employees were eligible for and received unemployment insurance benefits will see an adjustment in their 2018 contribution rates compared to 2017, with rates ranging from 0.1 percent to 7.1 percent. New employers will pay an industry average, ranging from 1.1 percent to 5.5 percent.