Many Employers Bracing for Higher State Unemployment Taxes in 2010

According to an Associated Press (AP) article, employers already dealing with tight credit and reluctant consumers must also face the costs of rising unemployment that are forcing higher state unemployment taxes on companies to pay for unemployment insurance (UI) claims. The AP article cites several examples of employers expecting to pay higher unemployment taxes in 2010:

• A liquor store owner in Maryland expects his unemployment taxes to rise from $3,000 this year to $9,000 next year;
• An owner of a foundry in Indiana that makes iron castings for machine parts said his unemployment tax bill could double next year, and;
• The president of a company in Connecticut that makes soda fountain syrup fears the state – which is borrowing funds from the federal government to pay unemployment claims – will have to raise unemployment taxes soon to repay the loan.

Why the expected rise in unemployment taxes? The AP reports that because the number of people claiming unemployment insurance has tripled since the recession began, the demand has drained the funds that many states use to pay unemployment insurance claims, forcing almost half of the states to borrow money from the federal government to continue paying unemployment insurance claims.

However, the bills are coming due since states reset their unemployment insurance taxes at the end of each year, and 33 states will raise unemployment insurance taxes next year, according to the National Association of State Workforce Agencies. For example, the AP article reports that Florida's minimum unemployment tax will increase from $8.40 to $100.30 per employee next year while Maryland's minimum tax will more than triple from $51 per employee to $187.

To prepare for the rise in unemployment insurance taxes anticipated for the coming year, employers may wish to consider using an unemployment insurance (UI) claims management service that offers relief from the strain caused by increased unemployment insurance claims and unemployment taxes. Past-Employ.com – a UI claims management service offered by nationally recognized employment screening and Human Resource Outsourcing (HRO) provider Pre-Employ.com – can help employers “Learn the 5 Secrets to Gaining the Advantage in UI Claims!” in a complimentary webinar of the same title that is available for on demand viewing at www.past-employ.com/UI.

With unemployment claims – and unemployment taxes – reaching epic proportions, now is the time for employers to fully understand the techniques of Past-Employ.com's UI Claims Management Services that they can use to save their companies thousands, possibly millions, of dollars each year:

• How to Reduce Claim Losses and Win More Determinations.
• How to Win More Hearings on Lost Determinations.
• Why These Actions Lower UI Tax Rates.
• Which Reporting Features are Critical to Quantifying True Savings.
• How to Outsource this Service and be Billed Monthly on Claims and Hearings Performed.

For more information on how Pre-Employ.com's UI claims management services from Past-Employ.com can save businesses time and money, view the free on demand webinar “Learn the 5 Secrets to Gaining the Advantage in UI Claims!” at www.past-employ.com/UI, visit www.past-employ.com, email info@past-employ.com or call (888) 330-7278 or (800) 300-1821.

pr@past-employ.com

Follow Pre-Employ.com on Twitter at www.twitter.com/PreEmploy.

*We welcome relevant comments and questions from consumers, experts, and human resources professionals. Please do not submit comments with advertisements as they will not be posted publicly. Thanks for visiting our blog!