Situation

As a result of legislation passed last year and their request for a $6 million Title XII loan this month, the state of New Hampshire has announced that all employers’ unemployment tax rates will be increasing for the first and second quarters of 2010.

What The Employer Needs To Know

If the employer’s "Reserve" on the Tax Rate Determination issued in August, 2009 was positive, the rate on that notice will be increased 0.5% for the first two quarters of 2010. If the "Reserve" was negative, the rate will be increased 2.0%.

As a reminder, that same legislation increased the taxable wage base from $8,000 to $10,000 effective January 1, 2010.

What You Can Expect

No employer specific rate increase information will be issued by the agency; however, the higher rate will be indicated on the blank quarterly contribution reports for those quarters. If you use a third party payroll provider, please make sure they are aware of this rate change to avoid underpayment of contributions due.

Tammy Mullin