House Passes Unemployment Insurance Rate Freeze Legislation

 

(BOSTON) – State Representative Paul McMurtry 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.

 

“This bill sends a clear message to businesses across the Commonwealth that we are serious about economic growth and job creation in Massachusetts.”House Speaker Robert A. DeLeo said. “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”.

 

“It is my hope this important legislation will help stimulate economic recovery,” Representative McMurtry said. “This bill is a step in the right direction of supporting the vitality of small business growth and sustainability throughout the Commonwealth”.

 

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