Unemployment Insurance And Workers’ Compensation Rate Reductions For Employers And Workers

Governor Chris Gregoire and leaders of the Washington State Senate and State House of Representatives today announced that Washington employers will save an estimated $89 million in business taxes next year because of lower premiums for unemployment and workers’ compensation insurance. Governor Gregoire has also proposed a six-month suspension of a portion of workers’ compensation premiums that next year would save employers and workers another $315 million, bringing the total savings to more than $404 million.

Governor Gregoire has made job growth a top priority. Since taking office, more than 150,000 new jobs have been created. Over half of the additional jobs are in construction and in professional services, such as employment and legal services, accounting, architecture and computer design. Washington was recently ranked by Forbes Magazine as the 12th best state for business and The Small Business & Entrepreneurship Council ranked the state as fifth best for small business and entrepreneurship.

“In a global economy, we have to fight every day to create family-wage jobs by recruiting business and helping existing businesses expand,” said Governor Gregoire. “By working closely with employers and finding ways to cut taxes, we are making sure we remain open for business.”

The Department of Employment Security (ESD) will reduce unemployment-insurance taxes in 2007 an average of 13 percent, for a savings of $58.4 million. The Department of Labor and Industries (L&I) will reduce workers’ compensation premiums next year by an average of 2 percent, for a savings of $31 million. Read more at governor.wa.gov