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Unemployment Insurance Tax Rates for 2022 - Unemployment Insurance

Federal funding is allocated to replenish the Maryland Unemployment Insurance  Trust Fund, and, as a result, Tax Table C will apply to employers’ unemployment insurance (UI) tax rates for 2022. Tax Table C includes lower tax rates than Table F, which was in effect in 2021.

  • 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 C, UI tax rates (for contributory employers) will range from a minimum of 1.00% to a maximum of 10.50%.
     
  • The tax rate for new employers is 2.30% in 2022.
     
  • The rate for new employers that are in the construction industry and headquartered in another state (also referred to as foreign contractors), is 5.40% in 2022.
     
  • The standard (employer) rate is 10.50% in 2022.
     
  • Interest rates will increase from .5% to 1.5% as we move to Table C. 
     
  • The taxable wage base for 2022 is $8,500.
     

View a breakdown of Table C

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 (DUI) determines an employer’s benefit ratio by dividing the employer’s benefit charges by their taxable wages (from the three fiscal years preceding the July 1 computation date).

The computation date is always the July 1 date before the calendar year for which the rate is assigned. For example, the computation date for calendar year 2020 was July 1, 2019.

Due to the passage of state legislation which aimed to provide financial relief to employers during the COVID-19 pandemic, each employer will receive two UI tax rate calculations for 2022:

  • One based on pre-pandemic experience that excludes fiscal years 2020 and 2021; and
     
  • One based on normal experience that includes fiscal years 2020 and 2021.
     

The first rate is based on the fiscal years 2017, 2018, and 2019, and the second rate is based on the fiscal years 2019, 2020, and 2021. An employer will receive whichever rate is lower.

Additional account details, including an employer’s quarterly benefit charges and taxable wage summaries, are available in BEACON 2.0.

Please note that if an employer’s contribution rate is the same using the pre-pandemic experience as it is using the normal experience, the employer’s rate will be determined based on the pre-pandemic experience. This means that the employer’s contribution rate will be calculated based on fiscal years 2017, 2018, and 2019.

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 2.0 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 are ultimately responsible for the deposit and payment of their Maryland unemployment tax liability, even if a third party is making the deposits. The Maryland Division of Unemployment Insurance recommends that employers activate their accounts in BEACON to confirm filings and payments made on their behalf by third party representatives. To learn more, see the BEACON employer account activation instructions and the BEACON new employer account registration instructions.

Note: Requests for payment plans will be reviewed on a case by case basis. Please visit the page below:

Maryland's Unemployment Insurance Trust Fund Payment Plans