Estimated Lost TNC Payments to Unemployment Insurance (2023)

The state may have an interest in ensuring that transportation companies in Massachusetts operate on a level playing field. In this case, that would mean that TNCs and taxicab companies each pay into Unemployment Insurance.

Overview

Unemployment Insurance (UI) is a state-operated insurance program designed to provide temporary financial assistance to workers who are unemployed and who meet eligibility requirements.²⁹ This program is funded through taxes paid by employers on the wages of their employees. UI benefits are intended to partially replace lost wages if an individual must search for new employment. TNC drivers, like other workers, may find themselves in need of this benefit. Furthermore, the state may have an interest in ensuring that transportation companies in Massachusetts operate on a level playing field. In this case, that would mean that TNCs and taxicab companies each pay into UI.

Assuming a UI tax rate of 1.45% (the prevailing employer rate for employers in the non-construction industry in 2023) and estimated total earnings of TNC drivers at $1,428,574,247, lost UI payments for all TNC drivers would be $1,428,574,247 × 0.0145 = $20,714,327 in 2023.

29.      To qualify for UI benefits in Massachusetts, individuals must fulfill several requirements. First, an applicant should have earned at least $6,300 over the last four calendar quarters. Second, they must be authorized to work in the United States. Third, individuals must be unemployed through no fault of their own. Finally, they must be both able and willing to commence suitable work without delay and actively seek employment by making three work search attempts each week. See more details at: https://www.mass.gov/info-details/check-eligibility-for-unemployment-benefits.

Date published:	April 30, 2024