Because the Unemployment Trust Fund remained over $250 million dollars on September 30, 2007, employers will once again be benefiting from a 1.0% fund balance reduction or discount from their rates for all four quarters in 2008. Employers also benefited from this 1.0% fund balance reduction for all quarters of 2007.

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

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