Augusta, Maine - Governor Paul R. LePage released a statement today about the Maine Department of Labor’s announcement that the 2014 Unemployment Insurance tax rates that businesses pay will fall to the lowest rates since 2009.
“The improving economy means that the tax rate for Maine’s employers will fall, saving them approximately $30 million in 2014,” said Governor LePage. “Employers can use this money to invest in their businesses and in their workers, further fueling economic growth. This is a win for Maine’s people and a win for our economy.”
The replenishment of the Unemployment Trust Fund, from which unemployment benefits are paid to laid-off workers, is a result of private-sector job growth and fewer unemployment claims.
David Clough, Maine state director of the National Federation of Independent Business, welcomed the news of the rate drop. “At a time when other labor costs are going up, the cut in state unemployment taxes will be welcome news for the thousands of Maine small business job creators,” Clough said. “However, there’s a danger that legislators will see these tax savings as something that can be spent via new mandates in higher labor expenses.”
Maine’s private-sector jobs have increased by about 12,500 under Governor LePage. Although the state has seen a decrease in government jobs, the vast majority of government employers do not pay unemployment taxes; they reimburse the trust fund when benefits are paid out. This means that the strength of the trust fund lies almost solely upon the taxes paid by private businesses. The increase in jobs, as well as any increases in hours worked or wages paid, builds up the trust fund balance.
Employers will see an annual decrease of between $19.20 and $169.20 in taxes paid per employee, with the average decrease being $64.80 per employee.
No comments:
Post a Comment