Maryland employers are expected to pay out less in state unemployment insurance taxes next year, according to the an announcement expected later today from the state Department of Labor, Licensing and Regulation.
According to the Baltimore Sun
, the department was expected to announce an improved employment situation for the entire state, which could allow businesses to spend the freed up tax money on other things.
The state's unemployment rate spiked during the recession and depleted the state trust fund used to pay jobless benefits. As fund was drained, tax adjustments for employer contributions were automatically made, pushing the rates paid out by companies to their maximum.
According to the Sun, the balance of the fund at the end of September was $795 million, up more than $330 million over last year.
The difference was enough to lower the tax rate.
"This is very welcome news," Ed Jacobson, president of Owings Mill-based Glass Jacobson, an accounting and wealth-management firm. "I'm happy for our clients."
But Jacobson said it's still "very challenging out there," referring to the economy and the number of people still out of work.
Unemployment taxes are paid quarterly by employers on a per-worker basis. Employers that have high lay-off rates pay more than companies with fewer or no layoffs.
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