Unemployment costs increasing across US

CNN Money featured the following article on rising unemployment expenses throughout the US. As the article relates:

Employers are getting hit with a massive tax hike at a time when they can least afford it.

Companies in at least 35 states will have to fork over more in unemployment insurance taxes this year, according to the National Association of State Workforce Agencies.

The median increase will be 27.5%. And employers in places such as Hawaii and Florida could see levies skyrocket more than ten-fold.

Many of these hikes happened automatically as prolonged joblessness triggered state laws governing their unemployment insurance systems. But at least seven states voted to raise their taxable wage bases, the level of income subject to unemployment tax. And another 10 are looking at upping the wage bases or tax rates.

The states are scrambling to restore their unemployment insurance trust funds, which cover claims.

State trust funds have been decimated by the Great Recession, forcing a record 26 states to borrow a total of more than $30 billion from the federal government. The numbers are expected to grow to 40 states borrowing $90 billion by 2012, said George Wentworth, policy analyst at the National Employment Law Project. Read more here. The state by state unemployment rate listing is available here for 2009. NY's rate in 2008 was 6.3 and in 2009 increased to 8.6.

Looking for Unemployment Insurance assistance? Contact NYCON for information on our Unemployment Savings Program. You will receive a free cost savings analysis, which will tell you how much money you will save. We will advise you on your best option, including if you’re better off staying in the state tax system. Contact us with your questions.