Rep. Cutler applauds bill to give rate relief to small businesses

Legislation will prevent spike in unemployment insurance rate

BOSTON – State Rep. Josh Cutler joined his colleagues in the Mass. House of Representatives in passing bi-partisan legislation that freezes a scheduled increase in the unemployment insurance assessment paid by all employers.

The state’s jobless benefits system is primarily funded by businesses. By law, as the funds in the unemployment system become depleted, employer contributions increase. Freezing the rate at Schedule E will save the average employer from having a 28 percent hike per employee, or an increase of about $500 million statewide.

Workers would continue to receive the same benefits and the fund used to pay benefits to unemployed people will still leave a balance of $600 million at the end of 2013.

“Unemployment insurance rates are not necessarily the kind of issue that make front page news, but they are a real burden on small businesses,” said Rep. Cutler. “This is a sensible, fiscally responsible step that will put more dollars back in the hands of small businesses and allow for more investment and job creation.”

The legislation was also approved by the State Senate and now heads to a conference committee before heading to the Governor's desk.

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Rep. Josh S. Cutler
State House, Room 167
Boston, MA 02133
Phone: 617-722-2810

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