Oregon Unemployment Insurance Unique Recipients Declined by 34% Last Year, Business Taxes Were Up 37%, After Tax Average UI Compensation Was Up 12% to $10,895.

I am a recently appointed public member of the Oregon Employment Advisory Council. 

At the quarterly public meeting last week I asked for 2021 data reported on IRS form 1099 G.  I asked for the number of forms sent, compensation reported, and income and employer taxes withheld. 

Unlike "claims" this count of 1099 G forms sent shows the number of unique individuals that received unemployment compensation during the year. Receipt of the form can trigger inquiries from individuals who did NOT actually receive UI compensation, leading to further review for fraud and identity theft. 

Last March I did an analysis of that same information showing that Oregon federal and state income taxes and employer paid UI taxes of $1.48 Billion. 

OED staff has provided the 2021 data to me and I have completed the same analysis as last year.

I created a 3 page PDF HERE with a table showing differences between 2021 and 2020, a table with 2021 data, and a table with 2020 data.  

The image below shows the 2021 and 2020 of taxes witheld by UI recipients and paid by employers. 

A  short summary:

• The number of unique UI recipients declined by 34%, but total UI compensation declined by less, 31%.
• Employers paid a greater share of total UI taxes paid, increasing their share from 55% to 72%; total employer paid taxes increased by 37%
• UI  recipient average 2021 payments after taxes were $10,895, up 5% from 2020.

More detailed observations of differences between 2021 and 2022. 

1. Total UI Recipient Income Taxes Withheld Decreased by 34%/$227 Million.
2. Employer Paid Unemployment Insurance Taxes Increased 37%/$299 Million. 
3. Total UI Taxes Increased by 5%/$72 Million.
4. Unemployment Insurance Compensation Declined by 31%/$2.4 Billon
5. Number of UI Recipients Declined by 34% /197K.
6. Average Federal and State Income Tax Withheld Declined by $590/ 34%.
7. NET Average Unemployment Insurance Compensation Per 1099-G Filed Increased by $1,153/12%.

Originally created and posted on the Oregon Housing Blog.