Please do not leave this page until complete. This can take a few moments.
Employers in Massachusetts will face additional assessments equal to 10.5 percent of their unemployment insurance rates as part of an accounting fix the state deployed to soften the pandemic's impacts, the Baker administration announced last week.
The unemployment system stabilization law Gov. Charlie Baker signed in May unwound massive spikes in the bills that businesses pay to fund joblessness benefits while imposing a new COVID-related charge, but until recently, employers did not know how much the additional assessments would cost.
In a letter to businesses dated Thursday, the Department of Unemployment Assistance announced the quarterly "COVID-19 Recovery Assessment" will be equal to 10.5 percent of each employer's existing UI rate. The Boston Business Journal first reported about the letter on Friday.
Those who pay a UI rate of 4.98 percent, for example, will face an additional COVID-19 assessment at a 0.523 percent rate. Adjusted UI rates and COVID rates will be available starting July 26, the department said, with bills for the first and second quarters due by Aug. 31.
COVID-19 Recovery Assessments will be retroactive to Jan. 1 of this year and will help "manageably spread over time the cost of benefits paid by the UI Trust Fund in 2020 and 2021," DUA wrote in its letter.
While the law aimed to reduce the immediate impact and trimmed the solvency assessment rate from 9.23 percent to about 1.1 percent, employers remain on the hook in the long term to cover the upheaval in the state's unemployment insurance trust fund. As of May 31, the fund had a balance nearly $1.8 billion in the red, according to the most recent state report.
Business groups have been pushing for the Legislature and administration to use a portion of state government's roughly $5 billion American Rescue Plan Act funding to pay down the deficit and reduce the burden they face. Lawmakers will kick off a public hearing process Tuesday about how to use that money.
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments