Good news today with regard to both workers’ compensation and unemployment insurance.
Governor Gregoire announced there will be no overall increase in workers’ compensation insurance premiums next year (however construction firms will see a smaller-than-proposed increase, depending on a firm’s risk classification). She also announced significant reductions in unemployment insurance taxes.
While there will not be an overall rate increase for workers’ comp, most construction firms, because they are among the higher rate classifications, will see a small increase (but much smaller than originally proposed). The average increase for construction categories is three percent, and ranges from a 14 percent increase for wallboard installation to a four percent decrease for construction estimators.
Click here for the rate tables for all classifications.
In addition, the Governor announced significant reduction in unemployment insurance taxes for 2012. The average rate reduction would be 13 percent, for about $207 million in savings overall, with a smaller reduction for most construction firms. About 88 percent of businesses will pay less than they do now.
The 13 percent average drop translates into a decrease in rates from 2.45 percent in 2011 to 2.12 percent in 2012. Class 1 (lowest rate class) rates will decrease 71 percent, from 0.49 percent in 2011 to 0.14 percent next year.
Class 40 (highest rate class, which includes many construction firms) will decline from 6 percent this year to 5.82 percent in 2012.