Retail Report: Most employers will get unemployment insurance tax cut in 2022

Gov. Kay Ivey today signed into law legislation that will mean an immediate tax reduction for Alabama employers.

The appropriations made using federal American Rescue Plan Act funds returns the Alabama Unemployment Compensation Insurance Trust Fund to almost pre-pandemic levels, which means the average employers’ tax liability for 2022 will drop by 29%.

The $79.5 million appropriated for the Trust Fund was to be deposited shortly after the governor signed HB1 into law. Officials with the Alabama Department of Labor say your individual 2022 unemployment insurance rate should be available for download soon, possibly as early as next week, at:

 

Unemployment compensation taxes are individual to each business based on a formula that takes into account wages paid; the amount of unemployment among current and former employees; the average duration and cost of unemployment benefits paid to claimants over a three-year period; as well as shared costs, which ALL employers pay.

The Alabama Retail Association thanks the Legislature and governor for acting rapidly to keep businesses from having to pay more in taxes.

Read the first story under This Week in Retail News to learn more about what the actions taken during the Alabama Legislature’s special session could mean to you and your business.

The regular session resumes Tuesday, Feb. 1, with the House convening at 1 p.m. and the Senate at 2. It appears the Alabama Legislature will not go into a second special session to redraw congressional districts after a federal court ordered they be redrawn. The attorney general has appealed the ruling.

For legislative and other news of relevance to retailers,
read This Week in Retail News.


THIS WEEK IN RETAIL NEWS

Almost 30% UC insurance tax cut coming for most employers in 2022 (alabamaretail.org)

Federal court orders new congressional redistricting; Alabama immediately appeals (apnews.com)

Federal judges won’t stay ruling against Alabama congressional map as drafted (montgomeryadvertiser.com)

Secretary of State: Qualifying ends today for everyone but congressional candidates (aldailynews.com)

OSHA abandons shot-or-test emergency rule for large employers after Supreme Court loss; says it will seek permanent COVID-19 standard (bloomberglaw.com)

Alabama Retail Comp returns $8.1 million in highest ever retrospective return (alabamaretail.org)

Tax filing season opened Monday; Deadline for Alabama employers to file W-2 info with ADOR is Jan. 31 (al.com)

Fed holds steady on short-term interest rates for now; tees up March increase to cool inflation (apnews.com)

Constitutional amendment needed for county, city ARPA spending on broadband (aldailynews.com)

How to get your at-home over-the-counter COVID-19 test for free (cms.gov)


Previous Alabama Retail Reports


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