State Announces Reduction in Unemployment Taxes for 2015Posted on Dec 15, 2014 in News
Improved Rates Projected to Save Employers $50 Million
HONOLULU — The Hawaii State Department of Labor and Industrial Relations (DLIR) today announced that Unemployment Insurance contribution rates for 2015 will be reduced 22 percent on average, resulting in employers paying $50 million less in taxes, or $100 less per employee on average for 2015.
The unemployment rate has dropped to 4.1 percent from 6.8 percent in December 2010, which has helped contribute to the replenishment of the Unemployment Compensation Trust Fund. As of October 2014, Hawaii had the sixth lowest unemployment rate among states. Hawaii’s civilian labor force reached a record of 667,750 persons in October.
“This is welcome news to many small businesses throughout the state who can now consider investing the savings in their businesses and personnel,” said Gov. David Ige. “The Trust Fund is designed to replenish its balance when times are better so the taxes on employers do not rise when the economy falters and when employers can least afford higher taxes.”