Gov. Walker said $1 billion UI fund balance could mean decreased payments for businesses.
Could Another Tax Cut Be Coming?
Good news for Wisconsin small business owners: In 2017, for the second consecutive year, employers could pay less in unemployment insurance taxes.
The Badger State’s Unemployment Insurance Trust Fund now has a balance of $1 billion, which could trigger a lower tax rate schedule for employers, beginning next year, according to a news release from Gov. Scott Walker’s office. In 2010, following the recession, the fund had a $1.3 billion deficit, but the balance has steadily increased thanks to a variety of factors: an improved economy, a bump in the taxable wage base, increases in the wage amounts to qualify for unemployment insurance benefits, slightly higher solvency rates paid by employers, adjustments in benefit levels, and a crackdown on unemployment insurance fraud.
There are four tax rate schedules, and last year’s lower rate schedule saves employers about $97 million annually. If the rate drops again, it could save another $38 million annually. Per employer, savings would amount to an average of $1,000.