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Show Unemployment claims low Utah unemployment insurance taxes will be dropping in 1991 for most employers due to low unemployment insurance claims according to a recent report by the Utah Department of Employment Security. Department Actuary William R. Homer forecasts that employer tax rates for 1991 will not include the reserve factor because the reserve fund will reach about $291 million by the end of 1990. Homer said there is also a high probability that there will be a negative reserve factor applicable to employer tax rates in 1992 if present pre-sent economic trends continue. Thus, tax rates for most employers would again decrease. This favorable trend is in sharp contrast to the fund's insolvency in 1983 when Utah had to borrow $23 million from the federal government govern-ment in order to meet unemployment unemploy-ment benefit claims. Utah's average unemployment insurance tax rate was 1.6 percent in 1989 and dropped to 1.47 percent (the lowest rate since 1 97 1 ) in 1990. That figure is projected to drop again in 1991 to 1.42 percent of eligible payroll. The present minimum tax rate in Utah is 0.6 percent, the maximum tax rate is eight percent. Utah has a system where an employer's basic rate is based on benefits received by former employees. A socialized rate is then added and the sum is multiplied by a reserve factor. It is this reserve factor that is expected to be eliminated elim-inated next year. Homer also noted the amount of benefits paid to the eligible unemployed is estimated to be $51.8 million on 0.51 percent (one half of one percent) of total wages in 1990. This represents the lowest benefitwage ratio since 1945. The maximum weekly benefit amount that an individual claimant may receive for 1990 is $214. Approximately Approx-imately 29 percent of all eligible claimants are entitled to the maximum max-imum weekly benefit amount, 71 percent receive benefit amounts of less than $214. |