The rates are expected to fall or remain flat for state employers due to an economy that is outperforming expectations. According to a news release from the Illinois Department of Employment Security, in Illinois, 167,380 businesses, nearly 50 percent of employers that pay unemployment insurance taxes, will see tax rates decline. More than 150,000 employers will pay the minimum rate of zero.
According to IDES, state law sets out a formula to calculate employer tax rates. The amount of money leaving the Trust Fund to pay the temporary unemployment insurance benefits is a key measure.
The formula also considers how long an employer has been in operation, the size of its workforce covered by the unemployment insurance program, and the amount of benefits received by former employees. The last significant changes to the formula were the product of bi-partisan legislation passed in November 2011.
According to IDES, because the Trust Fund balance is stronger than anticipated, tax rates can go down.
Anti-fraud programs also helped save employers money and reducing taxes.