UI Tax Rates Decrease for 2012

The Texas Workforce Commission (TWC) announced the average Unemployment Insurance (UI) tax rate for all employers will be 1.96 percent for calendar year 2012, down from 2.03 percent in CY 2011.

The average tax rate for experience-related employers is 1.87 percent for CY 2012, which is down from 1.96 percent in 2011. The standard minimum US tax rate paid by Texas employers in CY 2012 will be 0.61 percent, which is down from 0.78 percent in CY 2011.

The minimum tax rates are paid by 246,374 employers, which is 63.8 percent of experience-rated employers. An experience rating is determined by the amount of benefits that have been paid to former employees and charged to the employers account. An employer paying the standard minimum tax will pay $54.90 per employee in CY 2012 compared with $70.20 per employee in CY 2011.

In setting tax rates for CY 2012, TWC sought to minimize the effects of any increases and exercise all the authority given to it by state law to hold the tax rates to the lowest and most predictable rates possible. Texas employer UI taxes at the minimum rate are lower than other states and TWC and its 28 local workforce boards are committed to helping UI claimants return to work as soon as possible.

Visit www.texasworkforce.org for more information.

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