(Cheyenne, WY) – Governor Mark Gordon has signed an Executive Order (EO) providing significant tax breaks for eligible Wyoming companies. It does this in the form of a tax credit and by offsetting some potential increases in your unemployment insurance tax in the future.
Executive Order 2021-08 will remove all UI benefit entitlements between March 13 and December 31, 2020 from companies whose accounts were debited for these entitlements. The EO was approved by law in 2020 and ensures that these employers will not continue to experience significant increases in UI tax rates due to the system-wide surge in unemployment claims due to the COVID-19 pandemic. It will also provide loans to employers who have already been paying higher unemployment taxes in 2021.
“We understand that every employer in the state has been affected in some way by the pandemic and that many have increased their unemployment insurance rates – in some cases significantly – this year,” said Governor Gordon. “This Executive Order protects companies in Wyoming that have continuously faced the challenges in this new environment.”
To ensure this tax break doesn’t affect future tax rates, the governor will use $ 58 million in federal funds to replenish the Wyoming UI Trust Fund. The governor previously added $ 64 million to this trust fund, which has already helped keep rates from rising any further.
“It is important that we ensure that this significant tax break does not require an increase in UI tax rates at a later date,” said the governor.
Wyoming employers will experience a reduction in their unemployment tax rates after October 31st. They will also be notified by the Wyoming Department of Workforce Services of the value of the credits that can be applied to future unemployment taxes.
Executive Order 2021-08 can be viewed on the Governor’s website.