The Tennessee Department of Labor and Workforce Development has announced that it will move from Premium Table 4 to Premium Table 3, effective for January 1, 2008 through June 30, 2008. All employers will experience a tax rate increase with the exception of new employers and experience-rated employers with a negative reserve account balance. This does not affect your tax payment due January 31st for the fourth quarter of 2007.
The change in Premium Tables was necessitated by the fact that the Tennessee Unemployment Trust Fund balance fell below the $675 million threshold required to stay at Premium Table 4. In recent years it has been a common occurrence for the tax rate table (“premium table”) to change at the beginning of a calendar year and again on July 1st.
Click here for a chart that shows the previous tax rates under Premium Table 4 and the corresponding tax rates under Premium Table 3.
If there are any questions, please do not hesitate to contact us.