Substantially higher unemployment tax rates are in store for most Maryland employers for 2010. Tax Rate Table F will take effect, which is the highest tax rate table in the statutes. Tax rates for experience-rated employers will range from 2.20% to 13.50%. There will be no change in the taxable wage base, which remains at $8,500.
Examples of the impact of the higher tax rate table are available on the printable version of this bulletin.
As you can see, if your company’s experience is unchanged, so that you remain in the exact same rate bracket, your tax rate will nevertheless increase by a third at the very least.
Of course your own experience, in terms of unemployment benefit charges compared to your taxable payroll, is still the most important determinant of your tax rate.
Only twenty-eight states have avoided borrowing federal funds to pay regular unemployment benefits, and Maryland is one of these states. In fact, Maryland has never had to borrow federal funds for this purpose, but this admirable track record will probably come to an end early next year because of the unprecedented amount of benefit payouts.
If there are any questions please contact us.