Unemployment Insurance Tax Rates for 2024 - Unemployment Insurance
NOTE: Unemployment insurance tax rates were recalculated for 2024, due to a reinterpretation of Labor & Employment Article § 8-606(d). As in 2022 and 2023, the Maryland Division of Unemployment Insurance compared two methods of computing the tax rate and assigned the lower of the rates to each earned and standard rate employer. Regarding the calculation, one method is based on the employer’s pre-pandemic experience, and one is based on immediate past years’ experience.
All employers will receive a new 2024 Rate Notice in BEACON by Monday, April 1, and each employer will receive notice of this correspondence through their preferred communication method (text, email, or mail). For detailed information, see the Recalculation of Calendar Year 2024 Tax Rates FAQs and PowerPoint presentation.
Tax Table A is in effect for 2024. Table C was in effect for 2023.
Note: For UI tax purposes, employers are considered contributory or reimbursable.
- Contributory employers pay quarterly UI taxes based on benefit charges and taxable wages.
- Reimbursable employers (government entities and certain non-profit organizations) may choose to reimburse the state for benefits charged against their account, instead of paying UI taxes.
Under Table A, UI tax rates (for contributory employers) will range from a minimum of 0.30% to a maximum of 7.50%.
In 2024:
- The tax rate for new employers is 2.6%.
- The rate for new employers that are in the construction industry and headquartered in another state (also referred to as foreign contractors) is 3.30%.
- The standard (employer) rate is 7.50%.
- Interest rates are 1.5% per month.
NOTE: Employees are charged interest on late contribution/reimbursement payments. Interest charges begin on the date the payment is due and continue until the Division receives the payment.
- The taxable wage base is $8,500.
In Maryland, UI tax tables range from Table A, which includes the lowest rates, to Table F, which includes the highest rates. On each tax table, an employer’s benefit ratio corresponds with a specific UI tax rate.
The Maryland Division of Unemployment Insurance (the Division) determines an employer’s benefit ratio by dividing the employer’s benefit charges by their taxable wages (in the three fiscal years prior to the computation date).
For UI tax rate purposes, the computation date is always the July 1 date before the calendar year. For example, the computation date for calendar year 2020 was July 1, 2019.
Additional account details, including an employer’s quarterly benefit charges and taxable wage summaries, are available in BEACON.
An employer may request a review of their tax rate within 30 days of the Date of Notice shown on the Experience Rate Notice. Instructions for requesting a review are included in the Experience Rate Notice.
An employer may access their annual Experience Rate Notice in BEACON by selecting “Tax Rate Functions” from the portal left menu, and then selecting “Rate Notice.” An employer will also receive the notice via their preferred communication method.
Employers who have questions concerning their UI tax rates should contact the Employer Call Center at 410-949-0033
Employers may request to enroll in a payment plan for quarterly contribution payments. Under these plans, quarterly contribution payments may be paid in three-month installments or in customized monthly installments. Requests for payment plans will be reviewed on a case by case basis. To learn more, see the Maryland's Unemployment Insurance Trust Fund Payment Plans webpage.
NOTE: Employers are ultimately responsible for paying their Maryland unemployment tax liability, even if a third party is making the deposits. The Division recommends that each employer activate an account in BEACON to confirm filings and payments made on their behalf by third party agents. To learn more, see the BEACON employer account activation instructions and the BEACON new employer account registration instructions.