In another indication of economic recovery in Oregon, Unemployment Insurance tax rates for most employers will decrease in 2015. More Oregonians are returning to work and not drawing benefits from the state’s Unemployment Insurance (UI) Trust Fund. Demand for the state’s benefits is lower allowing Oregon’s UI Trust Fund to recover from the large amount of benefits paid during the recent economic downturn.
“It’s a boon for our state that more Oregonians are finding jobs and earning wages that provide for their families,” Governor Kitzhaber said. “Oregon employers will pay less for unemployment insurance, a trend that illustrates our state’s continued path to a stronger statewide economy.”
Oregon is one the few states whose UI Trust Fund did not go bankrupt during the recent economic downturn. While employers in many states now face tax surcharges or decreased credits against their federal unemployment taxes, most Oregon employers will see lower unemployment insurance tax rates.
Falling from Tax Schedule 6 to 5, employers in Oregon will now be charged an average of 2.53 percent on the first $35,700 paid to each employee. In 2014 employers paid 2.76 percent. With every step down in schedules, Oregon employers are saving money that can then be reinvested in their businesses and Oregon’s UI Trust Fund continues to recover from the large amount of benefits paid during the Great Recession.