Idaho employers have been shocked by the increase in unemployment tax rates in 2022. Those rate increases were not necessarily a result of an increase in benefit charges assigned to employer’s accounts; they were a result of the significant decrease in the state’s UI trust fund. Due to the insolvency of the trust fund, statutory triggers went into effect that resulted in a shift to a less favorable tax rate schedule for all experience-rated employers.
In response to the increase in tax rates, Governor Brad Little signed House Bill 450 into law on February 18, 2022, which shifts the tax rate schedule for all experience-rated employers back to 2021 levels for calendar years 2022 & 2023.
As a result, tax rates for 2022 will range from 0.207% to 0.691% for positive-balance employers and from 1.245% to 5.40% for negative-balance employers. This is a decrease from 0.252% to 0.840% and 1.512% to 5.40% for the respective groups.
The new employer tax rate will remain at 1.00%.
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 at www.thomas-and-company.com.
