The Tennessee Department of Labor & Workforce Development announced on Wednesday that most employers will pay a reduced amount on their quarterly unemployment insurance premium rates.
Unemployment insurance rates will decrease because the balance of Tennessee’s Unemployment Compensation Trust Fund on June 30 was more than $650 million, triggering the permanent expiration of the .6% additional fee in premium rates. Additionally, the trust fund trigger temporarily shifted the Premium Rate Table from table three to five, further increasing potential savings for employers for the next two calendar quarters.
Legislation enacted in June 2009 created a temporary additional fee of .6% on all unemployment insurance premium rates. This provision became effective January 1, 2009 as the trust fund became nearly insolvent, causing the state to take a $20 million interest-free loan from the federal government to continue benefit payments. The state paid back the federal loan within a month, and the measure has steadily improved the health of the fund to its balance of $817,606,274 as of Aug. 23.
“Tennessee has shown a tremendous amount of fiscal responsibility managing the fund into which employers contribute,” said Labor & Workforce Development Commissioner Burns Phillips. “This announcement is good news for both employers and the citizens of our state.”
Employers were mailed notifications of the changes to their individual accounts at the end of August showing their revised premium rate for the third and fourth quarters of the current year.
Eight Employer Accounts offices are located across the state and are staffed with auditors who answer employers’ questions. They can assist Tennessee employers who are starting a business understand premium and wage reporting and the payment of premiums.