NH cuts unemployment insurance tax for employers
CONCORD, N.H. (AP) — Gov. John Lynch has announced a cut in the unemployment insurance tax paid by 40,000 New Hampshire employers of .5 percent.
The reduction applies to taxable wages paid to employees during the fourth quarter of 2012, which started Monday.
Due to the national recession and the greater number of unemployment claims that resulted from them, the balance of the state's unemployment trust fund dropped significantly, putting the fund at risk of insolvency.
In accordance with state law, a .5 percent emergency surcharge was added in 2009 to help increase the balance. A second .5 percent surcharge was added in 2010.
Lynch said a promise was made to businesses the tax would be cut once the trust regained its strength.
A second reduction is expected to go into effect Jan. 1.