Idaho’s growing economy, a consistent decrease in layoffs and a solvent Unemployment Insurance Trust Fund are all contributing to a 6.6 percent decrease in unemployment insurance tax rates for 2019.
The state’s base unemployment insurance tax rate – used to calculate taxes existing Idaho employers pay will drop from 0.94 percent in 2018 to 0.878 for 2019. A new employer in Idaho will start with a tax rate of 1.0 percent – the lowest rate allowed by federal conformity requirements.
According to Idaho Department of Labor Director Melinda Smyser, the Unemployment Insurance Tax Relief Bill of 2018 is also paying off. The bill, passed unanimously by the Idaho Legislature, is lowering unemployment insurance tax rates by 32 percent over three years. As a result, Idaho businesses will save $115 million and the state will maintain a trust fund balance that can withstand a recession similar to the Great Recession of 2007.
New Idaho employers will end up with one of the lowest tax rates in the nation. According to the most recent data available on where states stand for unemployment insurance taxes paid by employers, Idaho ranked: 43rd in the nation in average annual tax rates paid by employers (1.2 percent); and 39th in the nation for the average tax rate paid by new employers (1.1 percent). (Idaho Department of Labor)
