Ohio employers will continue to enjoy reduced unemployment tax costs for 2001, the Ohio Department of Job and Family Services announced today.

The low rates are possible because Ohio's Unemployment Compensation Trust Fund is at a record level of more than $2.5 billion. Employers' unemployment taxes support the fund, which is used exclusively to pay benefits to unemployed workers.

The average tax per employee will continue at $131 for 2001, down from $243 in 1995 and the all-time high of $336 in 1984. More than 37,000 employers will qualify for a tax rate of zero for 2001. It will be the third consecutive year Ohio's unemployment compensation system has permitted some employers to pay no unemployment taxes at all.

"Low unemployment compensation taxes contribute to the continuing strength of Ohio's economy," said Jacqueline Romer-Sensky, ODJFS director. "The cost savings have a direct impact on employers' ability to invest in business expansion and job creation. Low unemployment tax rates also help attract new businesses to our state."

The Trust Fund money is available to be infused back into local economies in the event of economic downturns. The fund stands at 22 percent above the minimum safe level set by law, which is the amount considered sufficient to pay benefits for one year during a moderate economic downturn. The trust fund earned more than $140 million in interest in the most recent four quarters, offsetting more than 20 percent of the cost of Unemployment Compensation benefits paid during that period.

The New Hire Cross Match program for detecting fraudulent UC claims also has been a factor in protecting the Trust Fund and keeping tax rates down. Ohio employers must report new hires within 20 days of the hire date. The information goes into Ohio's New Hire Registry, checked daily by ODJFS against unemployment compensation recipients, identifying those who have returned to work but continue to receive benefits.

Employers' individual unemployment tax rates are based on their employment histories. The rates are applied to the first $9,000 of each employee's salary. The average rate for 2001 is estimated to be 1.45 percent. The maximum tax rate applicable for 2001, for employers who have filed their unemployment compensation tax returns in a timely manner, is 6.4 percent.

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For more information, contact the ODJFS Office of Communications, (614) 466-6650.