According to an article by the Baltimore Sun, employers in the State of Maryland will see the tax percentage owed for unemployment reduced by 50% next year.
The tax cut is being issued by the Department of Labor in an effort to encourage economic growth across the board for small businesses in Maryland. The Department of Labor predicts that employers will be able to use those additional funds towards business expansion and hiring new people.
During the recession, the unemployment insurance tax in Maryland continued to rise since there were so many people out of work and collecting the benefit. During that time, the State of Maryland’s unemployment trust was nearly wiped out, forcing the State to raise the tax due by businesses. Now with people slowly returning back to work and less people collecting the unemployment benefits, the State is turning back the tax rate to ease the financial burden on businesses.
Maryland’s unemployment tax is paid based on the number of employees a business has, and can increase for companies that have had layoffs in the past. In general, the more people that have collected unemployment from a particular company, the more unemployment tax that business is required to pay.
You can read the original article by the Baltimore Sun, here.