Protects employers from large per-employee assessment increase
February 17, 2011 — Press Release
BOSTON — State Representative Jennifer Benson joined her colleagues in the Massachusetts House of Representatives in unanimously passing legislation to halt a scheduled increase in the unemployment insurance assessment that all employers pay.
"This legislation recognizes that many businesses are still struggling to grow and recover from the recession," said Benson. "By reducing some of the financial burden on companies we hope that they will continue to expand and increase hiring."
The Commonwealth's unemployment insurance system is funded completely from employer contributions. The law governing unemployment insurance requires that, as the fund is depleted, employer contributions increase.
Without this rate freeze, employers would face, on average, a per-employee increase in cost for unemployment insurance of 35% - raising the employer contribution to $872 per employee. Collectively, this would amount to an employer contribution increase of roughly $551 million.
Though the rate freeze will still result in a 10% increase in payments by employers due to other unemployment insurance payment adjustment factors, the freeze will save the average employer $167 per employee.
