REPORT: AL Unemployment Tax to Nearly Double in 2021

Date: January 20, 2021

The state unemployment tax will nearly double in 2021.

Alabama Political Reporter says the average will go from an average of $52 per employee to $100 or more, an increase of about 92%. Alabama Department of Labor spokeswoman Tara Hutchinson told the online publication, “At this point, I don’t believe there’s anything that can be done in time to prevent that rate increase. There just isn’t enough time.”

She blamed the increase on the spike in unemployment claims paid out in 2020 because of COVID-19 pandemic and Labor’s decision to reinstate fees that it initially waived at the start of the pandemic.

NFIB State Director Rosemary Elebash said reducing the unemployment tax rate will be one of the small business community’s top priorities when the 2021 session of the state legislature convenes Feb. 2. 


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