Taxable employers: An offset to some of your benefit charges

Background

Note: Application deadline was Sept. 30, 2020.

A state law passed March 2020 allots $25 million to the COVID-19 Unemployment Account. The law applies only to taxable employers (those who pay unemployment taxes).

Taxable employers could apply to have this account offset some of their benefit charges for the first two quarters of 2020.

The offset is not a refund or reimbursement. It might reduce applicants' 2021 tax rate. 

 

How the offset program works

 
To determine the amount of your offset, we will use a formula that includes your qualifying benefit charges in the first and second quarters of 2020, the amount of money in the COVID-19 Unemployment Account and the total amount of benefit charges in all the applications we approve. 

A larger total of benefit charges from all applications will result in a smaller offset amount for each qualifying employer. The offset amount will vary depending on how the formula affects your tax rate class. For some, the offset will have little to no effect on your tax rate.


What's next for applicants

  • Application deadline was Sept. 30, 2020. We will begin reviewing applications in October.
  • We will notify you by mail when we approve or deny your application.
    • If we approve your application: You will find out the amount of your offset when you receive your 2021 annual tax rate notice.
    • If we deny your application: We’re sorry, but the state law does not give you the option to appeal.

What the law says