Show Employers face hike in rates for 00 Utah employers face a hike in unemployment tax rates in 1963 as much as for some according to the research i report released today by Utah the nonprofit tax research The greatest increases arc likely to result for employers with the most steady payroll according to the In addition to the rise in state payroll Utah Foundation analysts note that the increase will be compounded by the doubling of the Federal employment tax for employers of four or The Federal rate is scheduled to rise from of 1 to of The total payroll tax boost for some employers under the present formula may amount to as much as j 6 state increase plus Federal tax Foundation analysts point out that it is somewhat of an anomaly that the tax rate increases do not result from high unemployment or benefit payment the probable increases In state unemployment tax rates next year are automatic under present Utah which requires that tax levels be increased when the ration of the reserve fund to subject wages decline below prescribed The rapid rise in total wages during post-war period has not been matched by a corresponding increase in the amount of the reserve The ratio is expected to fall below the 7 level in after declining steadily the past five The problem arises because unemployment benefits are based upon an ever increasing total wage while unemployment taxes have been pegged to a fixed taxable wage-base maximum of and a maximum tax rate of The scheduled tax adjustments next under present statutory will further reduce the spread of the tax rates between low-cost and high-cost elimination of experience rating for unemployment the Utah Foundation report Experience rating is designed to relate employer tax rales to the call made by former employees upon the benefit Utah Foundation research indicates that trends under the present law could eliminate experience rating in Utah within five in which event all would pay the uniform maximum tax rate without regard to unemployment |