Did I ever tell you the story

 

About trying to renew

 

 

My NJ plumbing license seal

 

 

 

It was old and needed to be

 

 

Replaced.

 

 

 

Do you have about an hour?

 

 

 

It is wayyyy tooooooo long of a story

 

 

 

Without going into details

 

 

Let me just say

 

 

After many phone calls

 

 

 

 

It only took the State a year

 

 

To mail out my new

 

 

Plumbing seal

 

 

 

 

 

 

Now the State is treading on sacred ground

 

 

 

 

Each year in late July or early August

 

The State of New Jersey

 

Mails out the

 

 

 

New Jersey Employer Contribution Reports

 

 

 

To all New Jersey Employers

 

 

 

 

This form shows you how the State

 

 

Calculates your new

 

 

Unemployment Tax rate

 

 

For the next 12 months.

 

 

 

 

You have to stay with me here…..

 

 

 

 

The form shows how much

 

Your Company has paid

 

Into the unemployment fund

 

Since inception

 

 

 

It also shows the total amount of

 

Unemployment claim dollars

 

The Company has paid out

 

Since inception

 

 

 

 

Confused yet?

 

 

 

Keep reading

 

 

 

 

The bottom line

 

Shows your reserve balance

 

 

Or

 

 

How much money is left

 

 

In your account

 

To pay

 

 

Future claims

 

 

 

 

Alright….. take a breath

 

 

 

 

 

To determine your new rate

 

 

 

The State looks at your

 

Reserve balance

 

 

 

 

The State also looks at your

 

 

 

3 year taxable wage base

 

 

And your

 

 

 

5 year taxable wage base

 

 

 

 

 

 

Guess which Taxable Wage Base

 

 

The State picks?

 

 

 

 

 

If you said the higher number…..

 

 

 

 

You would be correct.

 

 

 

 

Well….

 

 

 

Guess what?

 

 

 

 

 

New Jersey will not be mailing out the

 

 

New Jersey Employer Contribution Reports

 

 

 

Any longer

 

 

 

 

You will now have to go online…

 

 

 

 

Set up an account…

 

 

 

And look up the information…..

 

 

 

 

Yourself

 

 

 

 

Did I miss that memo?

 

 

 

 

Did you miss that memo?

 

 

 

 

 

 

I bet you did not know that

 

 

 

 

Unemployment is the 2nd highest

 

 

Employer mandated tax by the government

 

 

 

 

It is the only tax

 

That you are able to manage

 

 

 

 

You do have the ability to manage

 

 

What rate your company is assigned

 

 

 

 

And

 

 

 

What dollar amount will be

 

Paid into the account

 

For the next 12 months

 

 

 

 

 

 

 

Did you know

 

 

That the national average

 

 

For the overpayment of an

 

Unemployment claim is

 

 

 

Over 10%

 

 

 

 

That means the State may be paying

 

The wrong amount for an unemployment claim

 

 

 

And the money is

 

Coming out of your account

 

 

 

How do you even know your

 

Unemployment Rate

 

Is correct?

 

 

 

How do you know if your

 

 

Reserve balance

 

Is correct?

 

 

 

 

This is one of the services

 

HBS provides

 

 

 

 

We serve as a public advocate for

 

Our clients

 

 

 

 

We hold the state responsible

 

 

 

 

We verify the assigned rate

 

Is correct

 

 

 

 

We manage the payment of claims coming

 

Out of your account

 

 

 

 

Auditing each claim payment

 

 

Verifying it is the correct amount

 

 

 

 

For companies with over 100 employees

 

 

The cost savings to

 

 

 

Manage your unemployment account

 

 

Can be seen within the first year

 

 

 

 

With the unemployment fund depleted

 

 

Now more than ever

 

 

Companies should be taking steps to

 

 

Manage their unemployment accounts

 

 

 

 

 

 

To learn more contact george@hbsadvantage.com

 

 

Visit us on the web www.hutchinsonbusinesssolutions.com

Why You Pay More

July 8, 2011

Each year at the end of July or in early August,

 

the State of New Jersey

 

mails to all NJ employers

 

the updated Employer
Contribution Reports
.

 

 

This report notifies
employers of their new unemployment rate

 

For the next 12 months

 

 

This begins a yearly ritual.

 

The owner sends a copy to their accountant,

 

the account reviews it

 

and life goes on.

 

 

Unemployment is a necessary evil.

 

 

Did you know….

 

 

Unemployment is the 2nd highest employer mandated tax paid by a business?

 

 

It is the only tax that you have the opportunity to control
what you contribute?

 

 

 

Unemployment is similar to having a checking account with
the State.

 

 

With this report….

 

 

The State tells you how much is in your account (reserve
balance)

 

 

The State also show you how many dollars were paid out in
claims

 

(how much was taken
out of your checking account)

 

 

The State assigns a rate based on the reserves you are
carrying

 

As a percentage of the taxable wages you have paid over the
past 3 to 5 years

 

 

 

This rate determines how much you will contribute into the
unemployment fund

 

over the next 12 months.

 

 

 

Seems pretty simple….

 

 

 

You hear all the latest political buzz

 

 

 

Everyone is talking about the deficit….

 

 

What are we to do about the debt ceiling?

 

 

 

Reduce our cost…….

 

 

Don’t raise taxes……

 

 

 

My guess is that nobody wants to talk about

 

 

The unemployment
deficit!!!!!

 

 

 

Each month we get updated numbers on the job market

 

 

Unemployment is over 9%

 

 

How are we to support the growing number in unemployment?

 

 

 

Did anybody tell you

 

That you will be getting a tax increase

 

 

To help cover the shortfall?

 

 

 

 

In the NJ Unemployment Rate Table

 

There are 6 columns the State uses to determine employers’
rates

 

 

 

In 2009/2010.

 

NJ worked off column
B
to establish employer rates

 

 

Because of the rise in unemployment claims

 

The reserves became depleted

 

 

 

In order to build up the reserves in 2010/2011,

 

There was talk in NJ of working off column D.

 

 

The State chose to buffer the increase passed onto employers

 

and work off column C instead

 

 

 

That meant

 

last year every employer in NJ saw their rates go up
automatically

 

And pay more into the unemployment fund.

 

 

 

Did the shift from column  B to C help?

 

 

 

The state still has a shortfall

 

 

 

This year,

 

There is talk of using column
E

 

for 2011/2012

 

 

However, most feel again

 

this would be too much of an increase

 

 

 

Instead,

 

 

 

Governor Christie’s signed a bill last Friday (7/1/11)

 

to work from Column D

 

 

 

I must have missed
that phone call!!!!!

 

Wasn’t that the Friday
before the holiday weekend?

 

I think I was stuck in
a traffic jam…

 

 

 

Each year,

 

the state continues to increase taxes by

 

 

shifting the table
used to assign rates to each employer.

 

 

We are all supposed to sit back and accept this as

 

 

The cost of doing business???

 

 

 

Besides jumping around on the table charts

 

 

 

How does an employer
even know their rates are correct?

 

 

Well, the State sent
me this form and it said this is our new rate

 

 

 

 

 

If you are an employer

 

with over 100 employees,

 

 

you should be asking that question.

 

 

The new rate does
not affect just 1 employee

 

But all employees

 

Therefore businesses with a larger employee base

 

Are affected more

 

 

 

If you currently employ over 100 employees,

 

Take the time to question your new rate

 

when you receive your notice.

 

 

 

Did you know that NJ has close to a 10% error rate in the processing of claims?

 

Nationally the error rate is over 11%

 

 

If the State is paying too much out in claims…..

 

 

Are they taking too
much money out of your checking account?

 

 

 

Really, close to a 10%
error rate

 

Who is holding the
state accountable?

 

 

 

For the last 10 years

 

Hutchinson Business Solutions along with our strategic
partner DCR

 

Has been asking this question for our clients.

 

 

We are your public
advocate.

 

 

There have been multiple instances that we have found an
error

 

In the rate assigned by the State

 

 

This is just not a NJ issue,

 

We see this in all the states we currently service
unemployment

 

 

 

How do you know if your current unemployment rate is
correct?

 

 

We would like to validate your

 

 

New unemployment rate,
for no cost.

 

 

We currently service many of the major corporations in the
Tri State area

 

 

For over 20 years

 

 

HBS and DCR have been at the forefront of unemployment

 

Representing the clients interest

 

 

Now more than ever, employers need to be proactive

 

 

Take the time to contest claims

 

 

Verify that the amount paid out for claims are correct

 

 

As the cost of unemployment continues to rise

 

You must be diligent

 

And take the necessary steps to manage your reserves

 

 

 

 

There may be some instances you cannot control

 

 

The state switches columns and everyone is affected

 

 

However,

 

There are multiple rates within each column

 

 

 

That is something we can
manage
.

 

 

Our goal is to keep the dollars in your account

 

And achieve the best rate possible for our clients

 

 

 

Notice that the state will always contact you

 

If you owe taxes

 

 

Unfortunately,

 

They do not contact you,

 

 

If you are overpaying
taxes

 

 

The onus is on you

 

 

 

 

Let us help you

 

All you need to do is ask.

 

 

Let us validate your unemployment rate?

 

 

Many clients have been surprised at what we have found.

 

 

 

 

To learn more about how unemployment rates affect your
business, email

 

george@hbsadvantage.com
or call 856-857-1230

 

Visit us on the web www.hutchinsonbusinesssolutions.com

The state of New Jersey will soon be issuing the 2010/2011 unemployment tax rate notices.

 For those clients with over 100 employees, it is important to be aware how these new rates will affect your company.

 Once you receive your notice, please fax a copy along with a copy of last years notice to HBS @ 856-857-1233.

 Upon receipt, we will review the information with you and validate the numbers are correct or discuss what options may be available with you.

 There are times that a voluntary contribution may appear to be beneficial. This contribution will actually lower your rate.  We will advise you as to the amount of contribution, as well as the anticipated tax savings.

 Please take note, due to the high level of Unemployment Benefits paid out, the State of New Jersey requires a higher tax rating table to be imposed this year. As a result, Tax Schedule “C” is in effect this year, compared to Tax Schedule “B” which was in effect last year. Thus, most employers will receive a higher tax rating assignment this year than they did last year.

To illustrate how this works, if you compare the two tables (see below portion of the tables) you will see that a Reserve Ratio between 0.00% – 00.99% last year produced a 3.0% tax rate; however, this year the same ratio produces a 3.6% tax rate, creating a 0.6% tax increase

 Tax Rate Tax Rate    Reserve Ratio       2009/2010        2009/2010 Difference

2.00% – 2.99%                    2.8%                          3.3%                            +0.6%

1.00% – 1.99%                     2.9%                          3.4%                           +0.6%

0.00% – 0.99%                   3.0%                          3.6%                          +0.6%

Unemployment Costs are rising and Unemployment Cost Control is more important than ever. The high level of unemployment, along with anticipated legislation, is expected to continue the trend of increasing unemployment compensation costs.

 Employers should continue to be pro-active in contesting unwarranted unemployment claims.

 While this has always been our position, it is important to continue to be diligent in this area.

 If you previously chose not to actively contest unemployment claims you may want to reconsider this approach in the future, based on the tax information outlined above.

 The successful participation in all unemployment hearings, with the assistance of our strategic partner DCR as required, will continue to help maintain the lowest possible tax rate. The impact of a few weeks in Unemployment benefits paid out may now have an even a higher impact to your bottom line.

Take the time now to proactively maximize your position on minimizing the cost of future tax increases.

If you should have any questions concerning the new tax rate, or would like specific recommendations for your organization, please do not hesitate to call.

 Now more than ever, controlling the cost of unemployment is important for your company.

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

Visit us on the web www.hutchinsonbusinesssolutions.com

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.