Important Information About Your Maryland Unemployment Insurance Account - Unemployment Insurance Tax Rates for 2016 - Unemployment Insurance
Maryland Unemployment Insurance Law requires DLLR to perform a solvency determination of the Unemployment Insurance Trust Fund each September 30th. On September 30, 2015 the calculation was completed, and the balance increased to $983 million, up from $904 million a year earlier. This increase mandates a change in the assignment of employer tax rates for calendar year 2016. This is a Maryland statutory requirement that cannot be altered by this Department or the Governor.
As a result of the solvency calculation, the Division of Unemployment Insurance has determined that the range of rates for calendar year 2016 is 0.3% to 7.5%. The rate for new employers in 2016 is 2.6%. An exception is that the rate for new construction employers headquartered in another state is 7.5%.
Employer tax rates are based on the ratio of the individual employer’s experience with benefit charges and taxable payroll over the last three fiscal years ended on June 30. Your 2016 assigned rate, in the range of 0.3% to 7.5%, depends on your experience over that time. Additional account details, including your quarterly benefit charge and taxable wage summaries, are available at on the WebTax online.
The taxable wage base for 2016 will remain at $8,500. Taxes are due on the first $8,500 of wages paid to each employee during calendar year of 2016. Employers are reminded that effective for the 1st quarter of 2016, DLLR will no longer mail blank quarterly reports to employers who have been filing the report by paper. All employers will be required to file electronically or use a third party payroll service to submit the report.
Your tax rate may be appealed within 15 days from the Date of Notice as shown on the enclosed rate notice. An appeal of your rate should be submitted in writing to the address shown on the rate notice. However, if you simply have a question concerning your rate, please contact the Experience Rate Unit at the telephone number, fax number, or e-mail address listed above.
Employers are ultimately responsible for the deposit and payment of their Maryland Unemployment tax liability, even if a third party is making the deposits. The Maryland Unemployment Insurance Division recommends that employers enroll in "WebTax" online to confirm filings and payments made on their behalf.