Some businesses in Maryland will pay less in unemployment insurance taxes next year because fewer people are applying for unemployment benefits, state officials said Thursday.
Gov. Larry Hogan (R) announced that the state’s Unemployment Insurance Trust Fund has grown by $125 million since January.
“This is a real win for our business community and the state as a whole,” Hogan said in a statement.
The growth in the trust fund triggers the tax rate change.
“The unemployment tax rate reduction is a sign of Maryland’s improving business climate,” said Kelly M. Schulz, Maryland’s secretary of labor, licensing and regulation.
Companies will be notified before the end of the month about the change in the tax rate, officials said. They estimate that the businesses affected will see a 50 percent reduction in unemployment insurance from $51 to $25.50 per employee per year.