Throughout 2008, a 1.0% discount was applied to employer rates as a result of the NH Unemployment Trust Fund exceeding certain levels. The current recession and resulting increase in unemployment compensation claims in the past year has caused the balance in the Fund to fall below the levels at which a discount can be maintained. As a result, there will not be any discounts applied to employer rates in 2009. In addition, a 0.5% emergency surcharge will be invoked for the remaining three quarters of 2009. RSA 282-A: 84 - Emergency Power will add 0.5% to all employers' tax rates. FAQs about Fund Balance Reductions and Emergency Power Surcharges

There are 3 different levels of fund balance reductions. A fund balance reduction of .5% is in effect whenever the unemployment trust fund equals or exceeds $225 million dollars on September 30 of the previous year. A 1.0% fund balance reduction is in effect when the fund equals or exceeds $250 million dollars on September 30 of the previous year. A 1.5% fund balance reduction is in effect when the fund equals or exceeds $275 million dollars on September 30 of the previous year. Quarterly Fund Balance Reductions and Surcharges

Fund Balance Reductions are only given to employers whose tax rates are 2.7% or less and their rate has been determined from schedule I (positive reserve). Employers who are new and have yet to receive an earned merit or experience rate are also allowed these fund balance reductions.

Law reference: RSA 282-A:82