Unemployment insurance taxes to fall in 2014
SPRINGFIELD — Illinois officials say the unemployment insurance tax rate will fall in 2014 for most businesses as the economy is expected to improve.
The Illinois Department of Employment Security said Wednesday employers who did not reduce their workforces in 2013 typically will see the greatest savings.
Illinois unemployment insurance taxes make up 0.7 percent of the average employer's per-employee compensation cost. Taxes for each of nine different types of businesses are lower this year.
The maximum rate of 8 percent is down from 8.4 percent.
Tax rates are applied to the first $12,960 of wages.
Unemployment insurance taxes pay for benefits for laid-off workers. They support 26 weeks of benefits. Operational funding for the Employment Security agency comes from federal funds, not business taxes or other state funds.