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Hawaii unemployment tax to drop 26 percent in 2016

By Kathryn Mykleseth

Dec. 23, 2015

The Hawaii State Department of Labor & Industrial Relation announced today a 26 percent average drop in Unemployment Insurance contribution rates.

The state said the drop results in employers paying $50 million less in taxes, or $100 less per employee on average for 2016. Employers contributions help maintain the state’s Unemployment Compensation Trust Fund at a level necessary to pay out unemployment benefits for one year. The state’s current reserve of $460 million is above what is necessary with enough to cover thirteen months of benefits.

Gov. David Ige. said in a statement the move comes at a time of continued strength in our state’s economy. Hawaii’s unemployment rate was 3.2 percent in November, down from 4.1 percent in November 2014.

“It (lowering the unemployment insurance contribution) frees up capital that companies can use to improve their businesses, and it’s also a reassuring sign to workers that the reserve has been replenished and will be available to act as a safety net in the event of a future economic downturn,” Ige said.

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    Sounds as if our top leader in Hawaii doesn’t think about saving for the rainy day?

  2. mikethenovice says:
    December 23, 2015 at 12:38 pm

    I still remember right after 9/11, Hawaii has just about no tourist for about a month. Food at the buffet’s table were spoiling. Are we prepared to factor that into out budget?

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