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How High are Your 2021 Unemployment Taxes?

How High are Your 2021 Unemployment Taxes?

January 4, 2021 Last Edit: March 4, 2025

How High are Your 2021 Unemployment Taxes?

Washington’s Employment Security Department has sent its unemployment insurance (UI) tax rate notices for 2021. Your feedback could help NFIB rollback this massive tax hike.

We have seen estimates that businesses with no layoffs or terminations during the pandemic could see unemployment insurance tax rates jump from about $44 per employee last year to $230 this year – a more than 500% increase. Tax rates for employers without previous UI claims that were forced to lay off or terminate workers during the COVID closures could have their taxes go from $44 to more than $1,000 per employee.

We need your help to determine whether these estimates are accurate, and how they could impact your ability to retain, re-hire, or add workers during 2021.

Members are already reporting skyrocketing rate increases.

  • A business with two, part-time employees hired midyear will see its rates increase more than 200%.
  • An employer who used a PPP loan to avoid layoffs during the pandemic will face a 400% unemployment tax increase.
  • Another reported their UI taxes increasing 500%, but no workforce details were provided.

A short survey on unemployment insurance rates is being emailed to members. If you haven’t received it, but would like to help, please click here for the survey.

 

 

 

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