Unemployment Taxes for Companies Skyrocket in 35 States

2 years ago

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Washington Reporter

Given persistent job losses in the struggling economy, companies in at least 35 states are seeing their unemployment taxes jump an average of nearly 30 percent, CNN reports. Many of the hikes will happen automatically as prolonged unemployment triggers state laws governing unemployment insurance programs. Other states have voted to raise the taxable base wage or tax rate.

The states are seeking ways to restore their unemployment insurance trust funds, which cover claims; 26 states have had to borrow a total of more than $30 billion from the federal government to pay claims.

Hawaii will be hit the hardest by automatic hikes in unemployment taxes. Its tax rate will increase 600 percent this year, upping the average worker's unemployment compensation tax from $90 in 2009 to $1,070 this year. Gov. Linda Jingle is trying to limit the impact of the tax hikes by proposing legislation to keep them from going into effect fully. State officials across the country are concerned that the heavy tax burden triggered by prolonged joblessness will make it difficult for companies to begin hiring again.

Filed Under: Economy, Taxes, Jobs

Tagged: companies, daily guidance, DailyGuidance, economy, jobs, taxes, unemployment

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