First, this bill will roll back the UI tax experience rating for years 2022 through 2024 to the pre-pandemic 2020 UI tax experience rate (benefit ratio). Your tax rates may fluctuate during the 2022 – 2024 period due to tax schedule changes; however, the rate will be based on your experience rate prior to the pandemic.
Second, this relief plan allows employers who meet certain criteria to defer up to one-third of 2021 UI taxes until June 30, 2022, without accruing interest or penalties on the deferred amount.
Additionally, employers may be eligible for up to 100 percent forgiveness of the deferrable 2021 UI taxes based on how much their UI tax rate increased from 2020 to 2021:
- 0.5 to 1.0 percentage point increase in UI tax rates will be eligible for deferral only
- Tax rate increased more than 1.0 percentage point and not more than 1.5 percentage points will be eligible for 50 percent of their deferrable UI taxes forgiven
- Tax rate increased more than 1.5 percentage points and not more than 2.0 percentage points will be eligible for 75 percent of their deferrable UI taxes forgiven
- Tax rate increased more than 2.0 parentage points will be eligible for 100 percent of their deferrable UI taxes forgiven.