New Jersey is set to release their new unemployment rates in August 2010.

There is one problem!

The state’s unemployment fund is vastly depleted and because of this they will be moving to a new column to calculate the rates. The current rates are being calculated from column B. The state currently has 6 columns to choose from in assigning rates. This year there is talk of moving to the furthest column, which will provide the maximum rates.

 Example:

If your current Employer Reserve ratio is between 4.00% and 5.00% you are currently paying 2.6% of your taxable wages into the unemployment fund over the last year. If your taxable wage base is $1,000,000 that would equate to $26,000. This ratio was chosen from column B.

Under the new proposed rating system if your Employer Reserve ratio is exactly the same, between 4.00% and 5.00%, your new rate could be chosen from column E+10. That would put your rate at 4.10%.

This is a 57% increase.

You will now be paying $41,000 into the unemployment reserve fund over the next year.

 Again, the actual table the state will be using has not been finalized but with the depletion of the current reserve balances, this option is being considered. Should they choose not to use the maximum rate, the next options could be:

Column C…3.1% ($31,000)

Column D..  3.4% ($34,000) 

Column E… 3.7% ($37,000).

Either way, your taxes are going up.

This would be a good time to validate if your current rate is correct!

Unemployment is the 2nd highest government mandated employer tax, yet no one seems to question it.

It is the only tax that you have the opportunity to control what amount you pay each year.

Is your rate correct?

The state of New Jersey has a 10% error rate in the payment of claims. This means that your rate may be incorrect.

The US Department of Labor states that if your company has been involved in a merger or acquisition in the last 3 years, there is a 50% chance that you have been assigned an incorrect rate.

We offer a free analysis of your current rate and we can also provide projections as to what your rate may be in the up coming tax year.

For more information email george@hbsadvantage or call 856-857-1230.

What’s your Rate?

We recently were notified that the State of New Jersey would be mailing out updated unemployment rates to all employers in New Jersey starting August 15th

Yawn!!!!

Why the announcement? No one looks at the notice.

So our rate may go up .1% from 2.3% to 2.4%, that’s the cost of doing business!

Wrong!!!!

 

How do you know your rate is calculated properly?

Unemployment is the 2nd highest employer mandated tax. It is like having a checking account with the state. They provide the rate, which tells you how much you must deposit into the account during the next year. They also provide a notice telling you how much they have taken out of your account.

Not Bad! Are you sure no one questions this?

 

Why publicize that employers may be overpaying payroll taxes? They do it willingly, without asking questions.

If your company employs over 150 employees, you should be looking at this rate. If there is a mistake it is not just with one employee, it is on your whole payroll.

Why will my rate be going up?

 Since the economy is been a bit shaky recently there are many individuals collectly unemployment and therefore the tax base supporting unemployment has been slowly depleted. In order to increase this revenue base the State of NJ will be moving to a new tax catagory which will automatically increase the revenues to support this base.

Without doing anything, your unemployment rate will be increased.

The State of New Jersey has over a 10% error rate in the payment of unemployment claims. That means they are taking too much money out of your account and that your rate is wrong!!

Been thru a merger, acquisition or restructuring?  The US Department of Labor statistics show there is close to a 50% chance the incorrect rate has been assigned to the new company. This stems from the governments inability to properly record these transactions.

Hutchinson Business Solutions has great success reviewing and validating if these unemployment rates are correct. Many of our clients are receiving refunds for overpayments! 

 

The state allows us to go back 3 years to verify if the current rate is correct. The state is not asking you to overpay taxes. The onus however is own you to provide the proper information.

What is your Rate?

 

What is your Reserve Balance?

How much have you paid out in claims?

 

Is your Rate correct?

Maybe today is the day to find out!

 

Call Hutchinson Business Solutions and ask about our no fee review of your current unemployment rate.

 

Our findings may surprise you.

 

You too may qualify for a refund!

 

Note:

This service available for companies with more than 150 employees.