Massachusetts State House.
HYANNIS – After unanimous approval by the House of Representatives, legislation that would provide financial relief for businesses facing increased unemployment insurance bills now awaits Senate approval.
2021 saw the annual unemployment insurance solvency fund assessment rise from 0.58 percent to 9.23 percent, a 1,591 percent increase.
The change is due to a statutorily-mandated increase in the formula used to calculate an employer’s experience rating due to the sharp increase in the number of unemployment claims filed during the COVID-19 pandemic, said the office of State Representative Steven Xiarhos (R-West Barnstable), who supported the legislation.
The bill would spread the costs over a 20-year period and would also recalculate first-quarter unemployment insurance bills reflecting the change.
Payments for the bills would be due by July 31, with new unemployment insurance claims charged directly to employers’ accounts beginning August 1.
Xiarhos noted that businesses that have already paid will receive a credit.
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