The Vermont Department of Labor announced the second decrease in state unemployment insurance (SUI) tax rates starting July 1, 2018.
State unemployment taxes remitted to the Vermont Department of Labor on a quarterly basis are deposited into the Unemployment Insurance Trust Fund and used for the payment of unemployment insurance benefits to eligible claimants.
The health of the Unemployment Insurance Trust Fund resulted in the Department moving from Tax Rate Schedule IV to Tax Rate Schedule III. Consequently, the highest UI tax rate will be reduced from 7.7 percent to 6.5 percent and the lowest UI tax rate will decrease from 1.1 percent to 0.8 percent.
Another result of the change in the tax rate schedule is that the maximum weekly unemployment benefit will be indexed upwards to 57% of the average weekly wage, also effective July 1, 2018. Therefore, the previous maximum weekly benefit amount of $466 will increase to $498.
If this positive economic trend continues, employers in Vermont will also see a $2,000 reduction in the taxable wage base on January 1, 2019, meaning that it will decrease to $15,600 for 2019 from $17,600 for 2018.