The Maryland Department of Labor, Licensing, and Regulation (“DLLR”) recently announced that UI Tax Table “A” will be in effect for calendar year 2007. As a result, 2007 tax rates will range from 0.3 percent to 7.5 percent (down from 0.6 percent to 9 percent). The average savings is expected to be $35 per employee in 2007. The state-wide average employer UI tax liability for 2007 will be $99, compared with $134 in 2006. The Maryland Chamber’s leadership in changing the UI process two years ago has generating this savings for business. Maryland UI taxes are paid on the first $8,500 earned by each employee during the calendar year. Thus for 2007, the per employee UI tax liability will range from $25.50 to $637.50 (down from 2006 per employee taxes of $51 to $765).

State UI taxes are experience rated and are, therefore, affected by each employer’s hiring practices, human resource management activities, turnover, and other factors. Employers have significant control over their tax rate and corresponding tax liability. Minimum-rated employers typically have low employee turnover and have no chargeable UI benefits assessed against their accounts.

To help organizations prepare their 2007 budgets, the Maryland Chamber of Commerce has arranged with Laurdan Associates, Inc., a nationally recognized expert in UI and a member of the State’s UI Oversight Committee, to prepare free 2007 UI tax rate projections for interested Maryland Chamber members. For more information contact Ronald Adler, President of Laurdan Associates, Inc., at 301-299-4117 or radler@laurdan.com.