The Vermont Department of Labor released information on June 19, 2018 indicating that unemployment tax rates for new employers in the construction industry are set to decrease effective July 1, 2018.
The general unemployment tax rate for new employers is to remain 1 percent, but new employers in construction industries recognized with codes 236, 237, or 238 in the North American Industry Classification System currently receive higher rates.
The new-employer tax rate for the buildings construction industry (code 236) is to be 4.6 percent, down from 4.8 percent; the new-employer tax rate in the heavy- and civil-engineering construction industry (code 237) is to be 6.1 percent, down from 6.4 percent; and the new-employer tax rate in the special-trade contracting industry (code 238) is to be 5.5 percent, down from 5.8 percent.
Effective July 1, 2018, Vermont’s experienced-employer unemployment tax rates are to be determined with Schedule 3 and are to range from 0.8 percent to 6.5 percent.
The range of rates to take effect July 1 has a lower maximum and minimum than the Schedule 4 range of 1.1 percent to 7.7 percent, which has been in effect since July 1, 2017. Vermont is one of four states that generally determines unemployment tax rates on a fiscal-year basis.
As always, if there are any questions please do not hesitate to contact us.