Washington’s UI Trust Fund replenishing – further UI tax relief proposed

Jan 27, 2022
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Written by Washington Retail
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In contrast to the PFML Trust Fund, the unemployment insurance trust fund, which funds benefits for unemployed workers, is rapidly replenishing from pandemic-driven lows. The trust fund, which is supported entirely by unemployment insurance taxes paid by employers, was nearing insolvency at the end of 2021 due to the unprecedented level of unemployment during the pandemic. In response, the Legislature appropriated more than $500 million in state and federal funds into the system to reduce the tax rate increases that employers were facing to replenish the fund. Those decisions, coupled with the remarkable rebound in employment, have resulted in the trust fund replenishing at a healthy rate. In response, SB 5873 and HB 2301 were introduced and scheduled for hearings this past week. The bills reduce the UI social tax rate by 33% in 2022 and continue with lower social tax rates into 2023.  Washington Retail will be supporting these bills.