BROWN LAUDS PASSAGE OF UNEMPLOYMENT INSURANCE RATE FREEZE
BOSTON, MA – State Senator Scott Brown is pleased to announce that he Legislature passed legislation that freezes the Unemployment Insurance (UI) rate that businesses have to pay into a trust fund for 2008. Governor Patrick signed the bill into law, forestalling a scheduled UI tax increase. The UI Trust Fund offers temporary income support when workers must leave their jobs or are laid off through no fault of their own.
The freeze will save employers roughly $153 million by preventing a scheduled increase in UI rates, which equals roughly $43 per worker this year. Currently, the UI Trust Fund has a robust balance of more than $1.1 billion. Even without the rate increase, the fund’s balance is expected to grow to about $1.4 billion by the end of 2008, which most experts agree is more than sufficient to cover any employee benefits requested and keep the fund solvent.
“This legislation is good news for employers and employees,” stated Senator Brown. “The freeze is an appropriate balance between making sure that there is help for those that find themselves jobless, and employers struggling to afford doing business in our state. The relief comes at a time when Massachusetts must do more to ease the regulatory and administrative burdens on businesses amidst a potential economic downturn.”
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