What the JOBS act could mean to you and your business

After the recession started in 2007, states were massively hit with having to pay unemployment benefits. This created a huge increase in state unemployment taxes, creating a rise of almost 44%. States have gone into debt, borrowing $45 billion in Federal funds, and they could only repay these loans by increasing taxes even more. A major problem for states, some states were forced by federal law to pay benefits that didn't make any sense when local conditions were taken into consideration.

However, the JOBS act is focusing on helping get people back to work and it could make an extremely positive impact on your business. What the JOBS act does is it helps states to keep unemployment taxes down and creates a major a push towards hiring. JOBS stands for Opportunity, Benefits, and Services Act, and with it states would have more flexibility in how they could spend their portion of $31 billion in remaining temporary federal employment funds. This way, they could choose to use those funds for things like preventing unemployment tax hikes and promoting job creation and hiring using reemployment services such as wage subsidies. This means that your business could experience an increase in better qualified employees because you won't have to worry constantly about an increase in unemployment taxes. Instead, you can spend that time focusing on job applicants, interviews, and your business overall.

With the JOBS act you won't experience any negative impact on how you pay your benefits. States will be able to keep on paying up to 99 weeks of unemployment benefits, and the states will have all the money they need to do just that. However, states will be able to decide if paying out fewer weeks of benefits is more sensible. Therefore, you'll still have all the money you need.

Perhaps most importantly, the JOBS act would not add to country's deficit. It can only enhance your business. Since the acts only promotes a reduction in taxes and more hiring, the economy can only take a turn for the better as more jobs are created. Your business can only thrive with the JOBS act.

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