In its annual review of State Unemployment Insurance rates, the state of Tennessee announced that some rates will be coming down due to the financial health of the trust fund.
As we noted in a previous post, the state announced it will permanently remove the .6% tax surcharge it implemented in 2009 giving all employers who pay unemployment insurance a tax reduction. As we noted in that Advi$or article, this was promised to be a temporary tax and the state actually lived up to that promise! It was removed July 1, 2013.
The State also recently announced other reductions in SUI tax rates effective 07/01/13:
- Construction firms will see a rate reduction from 8.6% to 7.5%.
- Mining companies went from 6.1% to 5.0%.
- Manufacturers will see a rate reduction from 6% to 5.2%.
- Manufacturing Sector 31 (includes food, beverage, tobacco, textiles, leather, apparel) remains at 2.7%.
- Manufacturing Sector 32 (includes wood, paper, petroleum, coal, chemical, plastic, rubber, commercial printing) went from 6.1% to 5.0%.
- Manufacturing Sector 33 (includes metal products, machinery, computer & electronic products, electrical equipment, appliances, furniture, transporation equip) went from 8.6% to 6.5%.
Note that these rates are for newer firms that have not had time yet to generate their own rate based on “experience”, the demand on their unemployment insurance account.
Time & Pay is a payroll service provider that helps keep your business in compliance with payroll related Federal and State tax laws. Time & Pay also offers human resources management, automated time and attendance, benefits management and worker’s compensation management.