Ranking Unemployment Insurance Taxes on the 2021 State Business Tax Climate Index by Janelle Cammenga published by Tax Foundation (12/2020)
“Today’s map is the final in our series examining each of the five major components of the 2021 State Business Tax Climate Index. Compared to individual, corporate, sales, and property taxes, unemployment insurance (UI) taxes are less widely understood, but they have important implications for a state’s business climate. A state’s performance on the UI tax component accounts for 9.4 percent of that state’s overall Index score.
Unemployment insurance is a joint federal-state social insurance program that finances benefits for recently unemployed workers through taxes on employers. State UI tax systems are often quite complex, using variable-rate structures that impose different rates depending on the age of a business, its layoff history, and the health of the state’s UI trust fund, among other factors. All 50 states and the District of Columbia levy UI taxes, but some states structure their systems better than others…”
