Courtesy / Maine Department of Labor
Laura Fortman
November 18, 2022
Maine businesses will see $23.7M in unemployment tax cuts in 2023
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Investments by the Mills Administration will help reduce unemployment taxes in 2023.
Maine businesses will see $23.7 million in unemployment tax cuts in 2023, the Mills Administration said Thursday.
Gov. Janet Mills said the windfall is from investments made in Maine's unemployment trust fund, which provides unemployment insurance to eligible Maine people who lose their job through no fault.
The unemployment trust fund currently stands at more than $600 million.
The average unemployment tax per employee is expected to be $236 annually, a decrease of $32 from the average in 2022.
Unemployment taxes are assessed on each employee's first $12,000 in wages during the calendar year. Approximately 48,000 employers in Maine pay into the unemployment trust fund based on the statutory tax rates that consider each employer's unemployment experience.
"This is welcome news for Maine employers who pay into the unemployment trust fund so that, when needed, it can fulfill its role as a critical economic stabilizer for families, communities, and businesses," said Department of Labor Commissioner Laura Fortman.
For the past two years, the Mills Administration dedicated $382 million in federal COVID relief funding to Maine's unemployment trust fund to prevent tax increases on Maine's small businesses. It was caused by unprecedented pressure on Maine's unemployment compensation system.
"By strengthening our unemployment trust fund, we have saved Maine businesses millions of dollars on their taxes and prepared Maine workers to weather future economic challenges if they do occur," Mills said.
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