The Tennessee Department of Labor & Workforce Development announced that unemployment tax rate calculations for the one-year period July 1, 2021 through June 30, 2022 are to exclude all unemployment benefits claimed during the COVID-19 pandemic in a measure signed by Governor Bill Lee.
Under the measure (SB 2520), unemployment benefits paid from March 14, 2021 through July 3, 2021 will not be charged to employers’ accounts for the purposes of computing the 2021-2022 state unemployment tax rate. This is an extension of previous laws and executive orders which in total now exclude charges beginning March 15, 2020 running through July 3, 2021.
The purpose of SB 2520 is to curb a sharp increase in tax rates for the one-year period July 1, 2021 through June 30, 2022 and future years, thus allowing Tennessee employers an opportunity to reinvest in their businesses after the COVID-19 pandemic.
No action is required by employers at this time. As always, we will continue to monitor this situation and provide updates as they become available. If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.