Protects employers from large per-employee assessment increase

BOSTON – State Representative Geraldo Alicea joined his colleagues in the Massachusetts House of Representatives in passing legislation to halt a scheduled increase in the unemployment insurance assessment that all employers pay. 

As a result of increased claims to the state’s Unemployment Insurance Trust Fund during the current economic slowdown, the contribution rate employers pay into the fund was scheduled to increase dramatically. The bill passed by the House of Representatives will freeze the rate at the 2009 level. 

“While we remain concerned about those who rely on unemployment insurance to survive, we must also lessen the burden on our businesses, which fund our unemployment system,” House Speaker Robert A. DeLeo said. “This bill sends a clear message to businesses across the Commonwealth that we are serious about economic growth and job creation in Massachusetts.”

“Fostering an environment healthy for business growth is vital to our economic recovery,” House Committee on Ways and Means Chairman Charles A. Murphy said. “This bill will protect businesses from an excessive increase which could stifle economic growth.

“While unemployment insurance remains an important buffer for hard working men and women who have lost their jobs in this recession, the best thing that we can do for them to get them back to work is to foster economic growth and job creation by supporting our businesses and preventing increased business costs in every way possible,” said Representative Alicea. 

In 2009, the average employer contribution into the Unemployment Insurance Trust Fund was $584 per employee. Without legislative action, this per-employee assessment would have jumped to approximately $852. The bill as passed by the House of Representatives will maintain contribution rates on the 2009 schedule. It is anticipated that even with the passage of the legislation the assessment on employers will increase a modest amount as a result of increased layoffs. 

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