The Utah state unemployment insurance (SUI) computed tax rates for 2019 continue to range from 0.1% to 7.1%. New employer rates vary, depending on the employer's industry. (Utah Department of Workforce Services website.)

According to a recent Utah Department of Workforce Services newsletter, approximately 75% of experience-rated employers qualify for the minimum SUI tax rate of 0.1% for 2019, paying as little as $35.30 per employee.

Calendar year 2018 was the fifth consecutive year that the Department collected less in SUI taxes from Utah employers. For 2018, Utah collected approximately $169 million in SUI taxes, a 52% reduction from the $354 million collected in 2013. According to the Department, Utah's trust fund is the fifth healthiest in the nation.

Mandatory electronic filing of SUI returns starting July 1, 2019

According to the Utah Department of Workforce Services website, effective July 1, 2019, all Utah employers are required to file quarterly SUI returns electronically. The Department will return to the employer any paper forms filed after this date.

2019 SUI taxable wage base

The SUI taxable wage base for 2019 is $35,300, up from $34,300.

2019 mailing of SUI rate notices

The Department mailed the 2019 employer tax rate notices on November 27, 2018. Employers may also access their tax rate notices electronically on the Department's website.

Calculation of 2019 Utah employer SUI tax rates

The 2019 SUI tax rates are calculated using the following three components:

1. Benefit ratio - determined by dividing the total of all UI chargeable benefits paid to an employer's former employees in the last four fiscal years (July 1 - June 30) by the employer's SUI taxable wages for the same time period. The benefit ratio portion of the overall tax rate is unique to each employer.;
2. Reserve factor - adjustment to the benefit ratio used to maintain an adequate balance in the benefit reserve fund. For 2019, the reserve factor remains at 1.0, meaning the reserve fund is at an adequate level.
3. Social cost - applied to all employers to recover benefit costs that cannot be attributed to a specific employer. The social cost will vary year to year and is "fixed" at that year's percentage for all employers. For calendar year 2019, the social cost remains 0.1% for all employers.

The total tax rate is calculated as Benefit Ratio X Reserve Factor + Social Cost. In addition, a 1% surcharge will be added to the overall tax rate if the employer or the previous owner of the business has unpaid contributions for the prior fiscal year (July 1, 2017 - June 30, 2018).

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