The state of New Hampshire has announced that it is lowering the Unemployment Insurance Tax Rate that employers pay to cover workers that are laid-off by 1 percent, effective this quarter.
The reduction – which will save employers about $37 million – is being made because the Unemployment Compensation Trust Fund currently has more than $275 million set aside for claims as of the end of last year. According to officials, when the trust fund reaches more than $250 million during a continuous three month period, giving a break to employers.
In a statement, Employment Security Commissioner George Copadis said strong fund compensation levels were great news for businesses and workers.
“Our unemployment tax rate remains one of the lowest in the country,” he noted, “and this rate is getting even lower effective this week as every New Hampshire employer will see a one-percent reduction, resulting in $37.2 million in real tax savings.”
Gov. Maggie Hassan added that while it was encouraging news, “we know that we still have more work to do to support job-creating businesses, expand middle class opportunity and keep our economy moving in the right direction.”
Republicans also commended the decision calling it great news for the state’s job creators.
“As we know, New Hampshire has some of the highest corporate tax rates in the nation,” said House Republican Leader Jack Flanagan, R-Brookline. “Any reduction to the cost of doing business and creating jobs will help our business community.”
Flanagan added that the leaders would be searching for other ways in the next session to attract new businesses and create jobs new and better paying jobs.
Over on the state Senate side, Majority Leader Jeb Bradley, R-Wolfeboro, applauded the move but added that there is more work to be done.
“In order to deliver permanent rate relief to New Hampshire employers, we need to not only protect the UC Trust Fund, but grow the New Hampshire economy,” Bradley said. “Republican tax reforms are already helping boost New Hampshire’s economy, and that will be our focus throughout this session.”
