Unemployment Insurance Update
Here is an unemployment insurance update from Ron Adler, President & CEO of Laurdan Associates and Chair of our UI Subcommittee:
On Tuesday I attended the State of Maryland’s UI Committee meeting that I serve as the Maryland Chamber’s representative.
First, the good news. Maryland will be in Table A, the state’s lowest rate level (0.3% to 7.5%), for 2014. This represents a significant improvement from previous years.
Second, the normal UI tax rate table is Table B (0.6% to 9.0%). We reached Table A for the most part because of moneys received from the federal government. This is unlikely to happen again. Thus we will most likely be in Table B for 2015.
Third, now the bad news. The federal government has just proposed increasing the federal UI taxable base from $7,000 to $14,000. This will mean federal UI taxes will increase for 2015. More importantly, the increase in the federal taxable wage base will mean an increase in Maryland’s and other states taxable wage base and UI tax liability.