Idaho UI Law Changes, Tax Rates Reduced For Many Employers

House Bill 355 was signed into law on January 1, 2018 by Governor Butch Otter, reducing the UI tax rates by 30 percent over a three year period.

HB 355 retroactively decreases UI tax rates for 2018 from the initial calculation sent to employers earlier this year to provide immediate tax relief. This legislation decreases the fund-size multiplier, a factor used in calculating unemployment tax rates for a year, to 1.3 from 1.5.

For 2018, revised tax rates for positive-rated experienced employers range from 0.269% to 0.895%, compared with the original range of 0.393% to 1.309%. The revised tax rates for negative-rated experienced employers range from 1.611% to 5.400%, compared with the original range of 2.355% to 5.400%.

The revised 2018 tax rate for new employers is 1.000%, compared with the original rate of 1.374%.

Employers that paid unemployment taxes for the first quarter of 2018 before the measure took effect are to apply overpaid amounts as a credit to a future quarter, the Idaho Department of Labor said on its website.

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