Idaho unemployment insurance rates projected to drop

BOISE, Idaho (KIFI/KIDK)-In spite of record unemployment claims, Idaho employers should see a roughly 18% decrease in unemployment insurance tax rates in 2021.

The employer rate remains at 1%, which is the lowest rate allowed by federal conforming regulations.   You can view a complete list of the 2021 unemployment insurance tax arrays for business here.

The rate is largely due to the availability of federal funds.

“Thanks to Governor Little approving a $200 million transfer of CARES Act funding to keep the Unemployment Insurance Trust Fund whole, most Idaho businesses will see a decrease in their tax rate for 2021,” said Jani Revier, Idaho Department of Labor director. “This move by the governor allows Idaho to keep UI tax rates low in the coming year and will help business owners as they navigate through these difficult times.’ Idaho has paid out about $1 billion in unemployment insurance benefits.  Idaho trust fund was responsible for the claims not paid by the federal funds.

Idaho’s unemployment rate jumped from 2.5% in March to 11.8% in April.  Idaho emerged as one of the least-impacted states for jobs and unemployment. 

According to the Department of Labor, business can help keep taxes low by:

* reporting unemployment insurance fraud by calling 877-540-8638

* reporting new hires within 20 days    

* responding quickly to requests for information on unemployment claims

* reporting when an individual refuses an offer of work.