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A high unemployment rate in your state could be one reason why you are facing increased taxes and more claims. To further compound matters, the recession created problems for a number of states, with tough economic conditions leading to debt and unemployment trust fund issues.

One location that managed to avoid borrowing from the federal government in order to pay unemployment claims was Utah. In fact, this state has been in relatively great shape in terms of its economy and workforce, and that is good news for local businesses.

According to the Utah Department of Workforce Services, the solvency of its trust fund is a key reason why local employers will face a declining unemployment insurance tax this year. Thanks to its reserves, a reduction of about $35 million is possible, significantly cutting tax rates.

“This is good news for businesses because they will save money on their UI taxes,” said Bill Starks, director of the Unemployment Insurance Division. “But it’s also an indicator of sound management of the program here in Utah.”

Utah joined 14 other states by avoiding debt during the Great Recession. Instead, most had to borrow money from the U.S. government to put back into individual unemployment insurance trust funds.

Utah has strong labor force
While the unemployment tax reduction is positive, Utah also has more upside for local businesses. According to the DWS, the employment situation in the state is strong as well.

In July, Utah’s nonfarm payroll employment surged by an 45,900 jobs. Its seasonally adjusted unemployment rate was only 3.6 percent during that month. The national jobless rate in July was 6.2 percent, for comparison. The greatest employment growth was in the construction sector, followed by the trade, transportation and utilities industry.

“July’s 3.6 percent growth is the highest thus far in 2014, both in terms of rate and numerical change compared to 2013,” stated Carrie Mayne, chief economist at the DWS. “While the size of the labor force has contracted slightly over the last four months, job growth is strong and job seekers are generally finding employment opportunities.”

Overall, these trends are signs that more positives are likely in the future for Utah businesses, not to mention lower rates and the possibility for fewer unemployment claims.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment insurance expenses.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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