Governor Hogan issues Executive Order “freezing” experience rating for Maryland’s employers
NFIB secured highly sought after relief for small businesses last week when Governor Hogan issued an Executive Order to prevent small businesses from seeing major increases in their unemployment taxes. As noted in a newsletter earlier this month, NFIB has been working with the Hogan Administration and policy makers to mitigate the anticipated jump in UI tax rates for 2021. A critical part of that effort was waiving all benefit charges against the earned rating record of an employer forced to lay off or furlough employees because of government ordered shutdowns.
An employer’s 2021 tax rate will now be calculated based on their non-pandemic experience by excluding the 2020 fiscal year (July 1, 2019 – June 30, 2020), and instead using the previous three fiscal years of 2017, 2018, and 2019. The Maryland Department of Labor issued a release providing further detail.
NFIB will continue working with the Administration and policy makers on more ways to provide small business owners further relief from expected increases to UI taxes.