Idaho unemployment insurance rates fall

Idaho businesses will see lower unemployment insurance tax rates in 2019.

The Idaho Department of Labor says a consistent decrease in layoffs and a solvent Unemployment Insurance Trust Fund have contributed to a 6.6% reduction in unemployment insurance tax rates.

That rate is used to calculate taxes employers pay. For existing employers, the tax will drop from .94% in 2018 to .878% in 2019. A new employer will start with a 1% tax rate…the lowest rate allowed by federal conformity requirements.

“We know Idaho employers want stability in the unemployment insurance tax rates they pay,” explains Idaho Department of Labor Director Melinda Smyser. “We are doing everything we can to help employers keep tax rates low.”

Smyser said the legislature’s 2018 tax relief bill will also lower rates by 32 percent over three years. She said that would save business $115 million and help the state maintain a trust fund balance that could withstand a recession similar to that of 2007.

Idaho businesses can find more information here.