When you receive a letter from the State of Utah stating that a former employee has filed for (or is appealing) Utah unemployment benefits, do scary thoughts start racing through your mind?
Is my UI rate about to jump?
Am I going to have to pay this out of pocket if I “lose”?
Take a breath. There's no need to panic. Here are the key basics about Unemployment Insurance so you can respond confidently (and sleep tonight):
1) You're not writing a check to the former employee. Weekly benefits are paid from Utah’s Unemployment Compensation Trust Fund, funded by contributions from employers across the state.
2) Your rate is mostly driven by your company's UI "experience." Contribution amounts are set by Utah and are based primarily on your company's recent UI “experience” (i.e., how many employees have applied for UI benefits, how many dollars have been paid out to those employees, etc.).
3) Most employers pay very little. DWS data for 2025 shows that that most employers (78%) were paying the minimum rate of 0.2%, which equals $2 on each $1,000 of payroll. Additionally, businesses only pay UI tax on wages up to $50,700 per employee.
Sometimes, though, it’s not really about the money—it’s about the principle: protecting your policies, your documentation, and the message it sends internally when someone challenges a separation. If that’s your situation, we get it.
If you want help completing UI documentation, responding strategically, or handling UI appeals, let us know. We're here and ready to help.
