UI Tax Reduction Bill Passes State Senate

Date: February 10, 2022

NFIB testifies in support of SB 5873 during its first House committee hearing

The Washington State Senate on February 9 passed Senate Bill 5873 by a vote of 48 to 1. On February 15, NFIB State Director Patrick Connor testified in favor of it during its first appearance in the State House before the Labor and Workforce Standards Committee, which will vote on it February 18.

According to Senate staff analysis, “In addition to the experience-rated tax, employers may pay a social cost factor rate (social tax)” on their unemployment insurance premiums. HB 5873 would reduce the social tax increases for unemployment insurance scheduled for 2022 and 2023, as well as the cap on the social-tax modifier benefitting small businesses employing 10 or fewer workers.

Basically, it is two years of unemployment insurance tax relief, worth roughly $265 million in savings, primarily to small businesses.

NFIB applauds the 48 senators for taking this action, which will be particularly helpful to those employers who had no layoffs or terminations during the pandemic. This is a big win for small businesses and decisions like this should be encouraged.

Click here to thank your state senator for voting to pass HB 5873.




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