Most organizations (and individuals) don’t have the time, or the inclination to become an expert in Unemployment Compensation law and regulations.

So one solution is to outsource the task or tasks to specialists in a particular field of expertise.

• “…the maximum unemployment insurance tax rate that companies pay per employee in the state (New York) increased about 20%…”⁹

• California Gov. Arnold Schwarzenegger proposed raising the wage base from $7,000 to $10,500, almost doubling the maximum per employee, per year.¹⁰

Source:

⁸ Robert Kittle, on News 2, WCBD TV Charleston, SC, July 17, 2009; 9 Diana Ransom, SmartMoney.com, January 13, 2009; ¹⁰ The Sacramento Bee, January 16

• 14 states have taken out a total of more than $8 Billion in federal loans to cover the shortfall.⁵

• 30 more states are in danger of exhausting their UI trust funds.⁶

• “..states with bankrupt trust funds will have to increase taxes or cut unemployment benefits at the worst possible time – during a recession.”⁷

Source:^{4, 6,} St. Petersburg Times, Robert Trigaux, August 26, 2009 ^{5, 7} Olga Pierce, ProPublica, June 4. 2009

• “The United States 2009 budget deficit will approach $1.6 trillion.” ²

• The White House Budget Office estimates the deficit will be $9 Trillion over 10 years.³

Source:

¹ The Washington DC Examiner Newspaper, Mar 29, 2007; ^{2, 3} business.theatlantic.com Aug 25, 2009

You know your Federal taxes will increase, but what about your state taxes, particularly your unemployment payroll taxes?

• 18 States have exhausted their unemployment trust funds ⁴

• 14 states have taken out a total of more than $8 Billion in federal loans to cover the shortfall.⁵

• 30 more states are in danger of exhausting their UI trust funds.⁶

• “..states with bankrupt trust funds will have to increase taxes or cut unemployment benefits at the worst possible time – during a recession.”⁷

Source:

^{4, 6,} St. Petersburg Times, Robert Trigaux, August 26, 2009 ^{5, 7} Olga Pierce, ProPublica, June 4. 2009

How much will your Unemployment Insurance Tax increase?

• “Unemployment insurance tax paid by business in SC may double.”⁸

• “…the maximum unemployment insurance tax rate that companies pay per employee in the state (New York) increased about 20%…”⁹

• California Gov. Arnold Schwarzenegger proposed raising the wage base from $7,000 to $10,500, almost doubling the maximum per employee, per year.¹⁰

Source:

⁸ Robert Kittle, on News 2, WCBD TV Charleston, SC, July 17, 2009; 9 Diana Ransom, SmartMoney.com, January 13, 2009; ¹⁰ The Sacramento Bee, January 16

Can you do anything about it?

• The choice often comes down to either becoming the expert in specialized areas or hiring an expert to perform the functions in those areas.

• Most organizations (and individuals) don’t have the time, or the inclination to become an expert in Unemployment Compensation law and regulations.

• So one solution is to outsource the task or tasks to specialists in a particular field of expertise.

For a checklist of what to look for in an Unemployment Compensation Cost Containment firm Click Here