By Payroll and Entitlements Editorial Staff
As a result of the COVID-19 pandemic, the New Hampshire trust fund fell below $250 million during the second quarter of 2020. Therefore, the fund balance reductions are not available for the third quarter of 2020. Further, because the Department of Employment Security has determined the solvency of the fund to be in jeopardy, there will be a 0.5% surcharge added to every employer’s rate during the third quarter of 2020. Beginning with the third quarter of 2020, negative-rated employers (employers whose rates are assigned under Schedule II or III) will have an Inverse Rate Surcharge of 1.5% added to their tax rates. This is an increase from the 0.5% surcharge that was applicable in the second quarter of 2020. Also, beginning in the third quarter of 2020, the new employer tax rate is increased to 2.7% (NHES Communication).
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