Unemployment Tax Bill Passes in State House 03/04/10 (audio)

Air Date:03/04/2010

By Eryn Clement

The State House has approved changes to the state unemployment insurance tax system. Senate bill 186 passed unanimously in the full house. The bill lowers the employer surcharges that kick in when the fund becomes insolvent from $150 per employee to $100 in 2010. The drop would be offset by a boost to the taxable base. The state is borrowing $12 million from the federal government to cover the shortfall. Representative Tim Rounds is a proponent of the legislation. He says this bill will benefit business owners and create a more predictable rate for employers.

 “I think one of the keys are it eliminates inequitable impacts. That being the small business owner out there that does not use the unemployment trust fund. They retain their employees. They’re not going to be socked with the higher rates as maybe that employer out there that is continually annually using the unemployment trust fund benefits,” says Rounds.

The state currently taxes only the first $10,000 of wages. The measure bumps that number to $15,000 over the next five years. The bill has already passed the Senate and is now headed to the governor.

Member stations can download the audio file here.

 

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