The Hawaii State Department of Labor and Industrial Relations reports that Unemployment Insurance contribution rates for 2015 will be reduced 22 percent on average, resulting in employers paying $50 million less in taxes, or $100 less per employee on average for 2015.
The unemployment rate has dropped to 4.1 percent from 6.8 percent in December 2010, which has helped contribute to the replenishment of the Unemployment Compensation Trust Fund, according to the department. As of October, Hawaii had the sixth lowest unemployment rate among in the United States. Hawaii’s civilian labor force reached a record of 667,750 persons in October.
“This is welcome news to many small businesses throughout the state who can now consider investing the savings in their businesses and personnel,” Gov. David Ige said in a prepared statement. “The Trust Fund is designed to replenish its balance when times are better so the taxes on employers do not rise when the economy falters and when employers can least afford higher taxes.”