Your company’s unemployment insurance tax is about to increase, by much more than you might expect, as all employers are moved from Table A to Table F (see below). The Rockville Chamber of Commerce recommends that you log onto your employer BEACON account now to learn how much you will owe this month.
What’s going on?
Because of the huge deficit in Maryland’s Unemployment Trust Fund, 2021 rates for existing employers will range from 2.20% to 13.50%, compared with 0.30% to 7.50% in 2020 (on a base taxable wage of $8,500). For some members your company’s first-quarter contribution could increase from $500 to more than $4,000.
You may have read that Governor Hogan announced that an employer’s “experience rating” will not change, so any employees you laid off in 2020 because of the pandemic will not count in that rating. That is good news. And, he announced that he is using $1.1 billion from the American Rescue Plan Act of 2021 to help replenish the Maryland Unemployment Trust Fund — also good news. But that amount doesn’t cover the entire $1.7 billion shortfall in the fund. That’s why the rates for all employers have been moved to “Table F” for 2021. Rates for specific companies will be based on your” benefit ratio.” See the link below. https://www.dllr.state.md.us/employment/uitaxrates.pdf.
To assist employers that find themselves in a position of financial hardship, the Department of Labor has is offering a deferment opportunity and payment plan. Click on the link below for details. https://www.dllr.state.md.us/employment/uitaxpaymentplans.shtml. RCC and other chambers do not believe these options provide sufficient relief for struggling companies.
We are engaging other chambers and business groups in an attempt to persuade the Governor to provide more relief this year. Please reach out to me with your questions and concerns about this.
President & CEO
Rockville Chamber of Commerce