N.H.'s Unemployment Tax Rate Drops By .5 Percent

Oct 3, 2014

Credit bytemarks / Flickr Creative Commons

New Hampshire’s unemployment tax rate went down by .5 percent at the beginning of the month.

State officials say the new rate is a result of the health of the state’s unemployment compensation trust fund, which ran a balance greater than $250 million in the third quarter of fiscal year 2014.

The state’s unemployment compensation law triggers an automatic reduction to the tax rate when the trust fund maintains certain levels.

New Hampshire Employment Security Deputy Commissioner Richard Lavers says that positive trend is expected to continue into next year.

“We forecast that the trust fund will continue to grow. That will trigger reductions of various amounts of both a half point and a full point reduction to the tax rate for New Hampshire business.”

Lavers says the lower tax rate is expected to save Granite State employers $4.3 million over the next three months.

New Hampshire’s unemployment rate stands at 4.4 percent, which is second lowest in New England and eighth lowest nationally.