The Hogan Administration Announces Continued Low Unemployment Insurance Taxes in 2018
Employers Benefit from Lowest Possible Unemployment Insurance Tax Rates Allowed
BALTIMORE (Nov. 1, 2017) – For the third straight year, Maryland employers will receive the lowest possible unemployment insurance (UI) tax rates under state law, announced the Hogan administration. Maryland’s positive economic state, with its low unemployment and high job growth, has made the low tax rate possible. Since January 2015, Maryland has added more than 130,000 jobs, and unemployment is at its lowest since 2008. These factors have resulted in lower unemployment benefit payments, which have helped keep the rate at Table A.
"Since taking office, growing Maryland's economy and creating jobs has been a top priority of our administration," said Governor Hogan. “We are committed to supporting initiatives that will help our businesses continue to thrive and succeed, which has resulted in more opportunities for our citizens and our lowest unemployment rate in nearly a decade.”
In 2018, the range of rates will be from 0.3 percent to 7.5 percent. The rate for new employers in 2018 will be 2.6 percent. Under Maryland law, an exception is the rate for new construction employers headquartered in another state, which will be 5.4 percent. The taxable wage base for 2018 will remain at $8,500.
“Under Governor Hogan’s leadership, the Maryland economy is strong and dependable, giving employers the infrastructure they need to thrive and create jobs,” said Maryland Department of Labor Secretary Kelly M. Schulz. “The Department of Labor is proud to be a part of that process, and support Maryland employers in their growth.”
According to the latest federal report, Maryland’s unemployment is at a nine-year low of 3.8 percent. Benefits paid dropped nearly $13.5 million between fiscal year 2016 and fiscal year 2017.
Since September 30, 2015, Maryland’s Unemployment Insurance Trust Fund has grown by more than $168 million to nearly $1.2 billion.
The Maryland Unemployment Insurance Program is financed by the Federal Unemployment Tax Act (FUTA) and is administered by the Maryland Department of Labor, Licensing and Regulation. As required by Maryland law, the Division of Unemployment Insurance does an annual “temperature check” on the Unemployment Insurance (UI) Trust Fund. This temperature check is made using the ending balance of the Trust Fund every September 30. The reconciled ending balance is compared to the taxable wage base for the preceding four quarters. That ratio determines the UI Rate Table for the next calendar year.
About the Maryland Department of Labor
The Maryland Department of Labor is committed to safeguarding and protecting Marylanders. We're proud to support the economic stability of the state by providing businesses, the workforce, and the consuming public with high-quality, customer-focused regulatory, employment, and training services. For updates and information, follow the Maryland Department of Labor on Twitter (@MD_DLLR), Facebook and visit our website.
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