Pennsylvania to reduce unemployment taxes next year

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in Small Business Tax,Small Business Tax Deduction Strategies

With the Pennsylvania economy doing well and unemployment down, the commonwealth has decided to reduce the amount that employers will have to pay into the unemployment compensation (UC) system in 2007. UC taxes on employers will decline by an estimated $158 million.

Beginning Jan. 1, 2007, the average UC tax rate for businesses is projected to be 5 percent, down from 5.4 percent in 2006. In addition, benefit payments will no longer be subject to a 2.3 percent reduction, which will restore full benefits to unemployed workers.  

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