Unemployment Insurance Tax Rates for 2021 - Unemployment Insurance
Due to the COVID-19 pandemic, the Division of Unemployment Insurance has paid over $1.5 billion in Unemployment Insurance benefits from the Unemployment Insurance Trust Fund. Because of the balance of the Trust Fund, Tax Table F will apply to employers’ unemployment insurance tax rate for 2021:
- The range of tax rates for contributory employers in 2021 will be between 2.2% to 13.5%, which is the Table F tax rate schedule.
- The rate for new employers will be 2.3%. Under Maryland UI law, there is a separate rate for new employers that are in the construction industry and headquartered in another state, which will be 7.0% in 2021.
- The taxable wage base for 2021 will remain at $8,500.
Employers may also opt for opt for payment plans in 2021. Employers may request a payment plan via their BEACON portal. Please contact the Employer Call Center with any questions you may have regarding payment plans at 410-949-0033 or by completing the UI Inquiry Form and choosing “Payment Plan” from the employer or TPA drop down menu.
An employer’s UI benefit ratio is computed by dividing the employer’s experience rate by the amount of taxable wages paid to employees in the prior three (3) fiscal years ending June 30. An employer’s Experience Rate is the dollar amount of unemployment insurance benefits paid to former employees that are charged to an employer's account. Due to the Governor’s Executive Order waiving charging of COVID-19 UI benefits, your 2021 tax rate will be calculated based on your pre-pandemic experience by excluding the 2020 fiscal year and, instead, using the three fiscal years of 2017, 2018, and 2019. All chargeable benefits paid to former employees from July 1, 2019, to June 30, 2020, will not impact your tax rate for 2021. Your 2021 assigned rate, in the range of 2.2% to 13.5%, depends on your experience over fiscal years 2017 - 2019. Additional account details, including your quarterly benefit charge and taxable wage summaries, are available in your employer portal.
There are some employers who will be negatively impacted by the Executive Order and receive a higher tax rate. For these employers, the Executive Order offers flexibility and their tax rate will be calculated as it normally would be and will be based on their experience during fiscal years 2018, 2019, and 2020.
You may request a review of your tax rate within 30 days from the Date of Notice shown on the Experience Rate Notice. Instructions to request a review are included in the Experience Rate Notice. However, if you simply have a question concerning your rate, please contact the Employer Call Center at 410-949-0033 or by completing the UI Inquiry Form.
Employers are ultimately responsible for the deposit and payment of their Maryland Unemployment tax liability, even if a third party is making the deposits. The Maryland Unemployment Insurance Division recommends that employers activate their account in BEACON to confirm filings and payments made on their behalf by third party representatives.