N.J. businesses’ unemployment taxes expected to skyrocket in next year

By Lisa Fleisher/Statehouse Bureau

December 30, 2009, 7:32PM

NJ-UNEMPLOYMENT-TRUST-FUND.jpgJames Bellis is already in a bind.

As an employer, he pays higher state unemployment taxes than many because he lays off about a dozen workers from his tree maintenance business every winter.

But next year, he expects to be forced into a deeper hole. Businesses will likely see their unemployment taxes skyrocket in July — and not come down for years — because the fund is broke.

It’s almost more than Bellis can handle, after seeing a 23 percent drop this year at Tree Tech, his Randolph business.

“In this economy, every dollar is valuable to managing a business,” he said.

Gov.-elect Chris Christie’s administration says the unemployment fund is one of the top three financial problems it will face when it takes over on Jan. 19.

“It’s a very serious problem, and, frankly, it’s as serious of any of the state’s fiscal problems,” said Rich Bagger, Christie’s chief of staff.

The fund has been strained by a persistent unemployment rate of close to 10 percent, but legislators and national observers say the problems stem from years of pillaging by lawmakers during better times to pay for other projects.

Because the fund is insolvent, employers will see an automatic tax hike in July, which could translate into businesses paying between $300 and $1,100 more per worker to bring $1 billion more to the state, according to the state Labor Department.

But even that will not stop the fund’s deficit from increasing fivefold, from $926 million now to $4.5 billion by the end of April 2011. New Jersey is one of 25 states that has borrowed money, interest-free through 2010, from the federal government.

The situation puts Christie in an unpleasant position, because he has promised no tax increases, because the hike is baked into the unemployment system. It automatically adjusts the tax rate based on the fund’s balance and an employer’s individual history of layoffs.

The tax hike could work against an economic recovery, causing businesses to hire fewer people, lay off workers or freeze or lower salaries, said Rich Hobbie, executive director of the National Association of State Workforce Agencies.

“This is a serious increase in costs for employers,” he said. “They have to figure out some way to cover that cost.”

The tax increase comes at the worst time for businesses, said Art Maurice with the New Jersey Business and Industry Association.

“Employers are struggling to keep people working that they have on their payrolls now,” he said. “Now to add an across-the-board (unemployment insurance) payroll tax increase on top of that would just be backbreaking.”

Bagger said the administration must look at all possible options to revive the once-flush fund that now supports more than 175,000 New Jersey residents. The choices include:

• Pushing legislation to put off or reduce the tax increase. The downside is that increases debt.

• Reducing benefits to bring them more “in line” with other states. Democrats and worker advocates will fight that change.

• Finding $1.9 billion for the fund. But from where? Gov. Jon Corzine just cut $839 million in spending to deal with a nearly $1 billion current budget deficit, and the Christie team projects it will be $9.5 billion short for next year’s budget.

• Teaming with other states to ask the federal government to forgive loans.

Lawmakers have known this was coming for years. Over the last two years, Corzine pushed off similar tax increases on employers by putting $380 million from the general fund into the unemployment fund.

The U.S. Department of Labor expects 40 states’ funds to become insolvent by 2011.

Already, 25 states and the Virgin Islands have borrowed more than $25 billion from the federal government to pay claims, not including extended benefits paid for by the federal government. New Jersey started borrowing in March and now owes more than $926 million. The biggest borrower, California, owes $5.9 billion. Michigan owes $3 billion and New York owes $2 billion. The states’ problems are not unprecedented. In the 1970s and ‘80s, states borrowed regularly from the federal government, but loans at that time were interest-free. This time around, loans are interest-free only though 2010

State lawmakers around the country are scrambling to deal with the problem.

New Hampshire, for example, has instituted a one-week waiting period to get benefits and increased the portion of salary taxed. Indiana in April saw thousands of union workers protesting cuts the governor there called “Rolls-Royce” benefits. And 10 states are already making employers pay their system’s highest tax rate, which is what New Jersey is scheduled to do.

New Jersey legislators disagree about how to solve the problem.

New Jersey has one of the highest weekly benefits — $584, compared with $405 in New York and $566 in Pennsylvania — and it will automatically increase to $600 for newly laid off workers who receive their first benefit check after the New Year.

It also is one of a handful of states to allow people to collect checks the first week they are unemployed — instead of waiting a week — and which allows increased benefits for people with children, according to the National Association of State Workforce Agencies. Advocates say this is because it costs so much to live here.

Still, some legislators say the state can’t afford to categorically leave out options.

“Everything should be on the table,” said Assemblyman Joseph Malone (R-Burlington), who said the solution to the fund’s problem needed to be worked out with a comprehensive approach to fixing the economy. “The decisions that are going to have to be made are going to anger people.”

The very suggestion has drawn sharp words from some legislators and advocates.

“Given the dire situation it’s just mean-spirited,” said state Sen. Barbara Buono (D-Middlesex.) “I think that it would be unconscionable, given the current state of affairs, to decrease benefits. We’re talking about people keeping a roof over their heads and keeping food on the table.”

An alternative approach, offered by state Sen. Stephen Sweeney (D-Gloucester), is to let the pot just replenish itself.

“These funds have to build up, and they can’t build up overnight,” he said.

To be sure, even the more generous features are not what caused the fund to fail. The major source of the problem, critics say, is not even the recession, but rather the $4.7 billion siphoned from the 1990s through 2006 by governors and legislators from both parties to pay for things such as health care for the poor.

“Unemployment wasn’t so long-term back then,” said Buono, who supported the diversions. “Given the set of alternatives that we had and the cuts that were made, this was not anything that any individual legislators wanted to do but … I think it was something that needed to be done at the time.”

The unemployment fund kept growing, reaching $3.1 billion by the end of 2001. But even after the balance slipped, plunging to $1.5 billion by the end of 2003, governors and legislators continued to scoop up money before it hit the fund, until Corzine stopped the practice in 2006.

The state has started to take steps to prevent that from happening again. In November, voters will decide on a constitutional amendment that would prevent the Legislature from diverting money.

As an employer, Stephen Fauer wouldn’t mind that his environmental services business needs to pay higher taxes to contribute to the state’s bankrupt unemployment fund.

“If someone puts their hand out and asks, ‘Help me,’ you don’t say, ‘No,’” said Fauer, who owns Environmental Strategies and Applications in Middlesex. “That’s the kind of tax I pay not necessarily with a smile on my face, but not with a heavy heart.”

What bothers Fauer is the reason he will likely have to pay more.

“It’s the irresponsibility of our politicians,” he said. “Doing things for expediency rather than things that are correct. You need to behave in a way that’s correct. You need to behave in a way that’s responsible.”


How it works

Employers and employees both contribute to the fund. But employees put in a small, fixed amount, whereas employers pay the lion’s share of the tax – and the amount they pay varies.

The system taxes employers based partially on how much money is in the fund, and partially based on their history of laying off workers.

But there’s another factor: All employers are affected by how much money is in the unemployment pot. If the balance sinks too low, taxes go up for everybody, which is happening this year.

Our Perspective:

Did you Know:

Unemployment is the 2nd highest US Government Employer Mandated Tax!!

 Why is it, that something that is ranked so high, stirs so little questions?

Many employers just see it as a cost of doing business.

Did you know that the unemployment tax is the only tax that you can have a say as to what your rate is?

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

When is the last time you asked that question?

Did you know that the state of NJ has a 12% error rate in the payment of unemployment claims?

If they are paying claims incorrectly, that means they are taking too much money out of your account and that your rate may be incorrect!

Unemployment is a very basic concept:

Each company basically has a checking account with the state to pay for unemployment claims.

The state assigns a rate to each company, which determines what percentage of payroll is paid into this checking account to help pay for claims.

The state then notifies you how much money was taken out of your account to pay for claims that your company may have been liable for.

Would you give the state your personal check book?

You may say no!!!!! 

But you have more $$$ in your unemployment account, then you will ever have in your personal checking account. Yet people still do not ask……

How much are we paying into unemployment?

Are you sure we are paying the correct amount?

Is your currenr nemployment Rate Correct?

Hutchinson Business Solutions has been dealing with this exact question for over 10 years. We offer a free service to determine if your rate is correct.

If we find there is an error, we will work with the state to get it corrected and take the necessary steps to file for a refund.

We will also work with you to help control unemployment cost and your future rate.

Should you like to know more email george@hbsadvantage.com or you may call 856-85-1230.

The Unknown Cost

January 25, 2010

The main topics being spun in Washington lately have been Health Care and the Bank bailout. What has been lost in the discussion is what must be done to get the economy moving and providing jobs for America. That seems to be the mantel that President Obama is just starting to pick up.

Every month the experts look to see the latest unemployment data; this proves to be a strong indicator on how and if a recovery is sustaining. Unfortunately, the unemployment report continues to be dismal. Just last week, I saw an article saying that layoffs were higher than expected in December 2009.

The unemployment rate is still over 10% and this will continue to play a large roll in supporting the economic recovery.

How does this all effect me?

Everyone reads about the rising unemployment, but have you ever stopped to think what this means for your company? You may say, “We have not had many layoffs, so it doesn’t really effect us.”

Don’t be too quick in making this assessment.

The unemployment is a state fund that all employers pay into. Each employer basically has a checking account with the state to help fund claims. The state assigns a rate to each employer, which determines what percentage of payroll is paid into the fund to pay for claims. The state will then notify each employer as to how much they have taken out of this account in payment of claims.

Seems simple enough!

Because of the high rate of unemployment, more dollars are being paid out in claims and there is not enough money in the fund to support these claims. We were lucky last year because part of the bailout went to funding this shortfall.

But, how does the state address this shortfall in funding?

If you look at the unemployment rating structure set up in New Jersey, you will see that there are six tables the state can use to fund unemployment. All they have to do is switch what table they use in assigning the rate and without notice you have just received a tax increase.

As an example: Suppose your company has a positive reserve ratio between 4% to 4.99%

In 2008 – the state assigned your unemployment rate from column A….. your unemployment  rate would have been 2%.

In 2009 – the state started assigning your unemployment rate from column B…. your new unemployment rate would have been 2.6%.

A 30% increase and nothing really changed!

In 2010 – the state is now looking to fund unemployment from column E+10%, guess what your new rate will be?….. 4.1%

That is over a 57% increase from last year. The rate would have doubled since 2008!

Note: This is just not happening in New Jersey, every state is faced with the same dilemma………. How do we fund the higher claim levels?

What is your current rate?

When was the last time you validated that your unemployment rate is correct?

Now more than ever, it would be prudent to ask this question.

There may be a mistake in the calculation or we may offer options that may help to minimize the potential increases in the long term.

We offer a free analysis of your existing unemployment rate.

Would you like to know more?  Email george@hbsadvantage.com or call 856-857-1230

Unemployment is the 2nd highest employer mandated tax on employers. It is the only tax that you have as an employer, have the opportunity to determine what your rate should be.

To learn more about how the unemployment tax effects your business, you may visit our website www.hutchinsonbusinesssolutions.com or feel free to contact us.

No need to tell Gilberto Ramos yesterday’s depressing statistics about the job market.”I’m a little upset now, because I’m actually experiencing it,” said Ramos, 44, of South Philadelphia.

On Aug. 29, Ramos became one of the 592,000 American workers added to the unemployment rolls last month, according to the dismal report from the U.S. Labor Department.

With 9.4 million now out of work, the unemployment rate rose to 6.1 percent – a five-year high – while the economy shed 84,000 jobs in August, the eighth straight month of job losses and more than analysts expected.

The bad news comes on the heels of two intense weeks of political convention activity as presidential candidates John McCain and Barack Obama kick their campaigns into high gear.

Standing in front of the state employment office in South Philadelphia, Ramos said the economy was at the top on his list of issues.

“I’m looking to vote Democrat,” he said, “because I think the Republican Party has taken care of their own and not the needy in America.”

Every unemployed person who walked out of the CareerLink office around lunchtime yesterday blamed the Bush administration for the state of the economy – and most said they were leaning toward Obama.

That’s not a surprise, political analysts said yesterday.

“Any bad economic news helps the Democrats,” said Ross Baker, a political science professor at Rutgers University in New Brunswick.

“I think that the emotional punch of unemployment figures is much more powerful than any other economic data,” he said.

Although there was hiring in health care and mining, jobs were lost in manufacturing, staffing, construction and retail, the report said.

“We’re losing jobs in all kinds of industries now,” said Roger Kubarych, chief U.S. economist at UniCredit Global Research in New York. “This is the clearest recessionary signal we’ve seen.”

Yesterday’s report brings the total decline in payrolls so far this year to 605,000. The economy created 1.1 million jobs in 2007.

The percentage of the unemployed still without jobs after six months rose to 19.5 percent, up from 17.4 percent a year ago.

And while the official unemployment rate is 6.1 percent, up from 5.7 percent last month and 4.7 percent a year ago, a larger group is also up. This group, which includes workers too discouraged to look for jobs and people who are working part time because they can’t find full-time positions, rose to 10.7 percent, up from 10.3 percent last month and 8.4 percent a year ago.

Also, the deteriorating labor market raises the likelihood the Federal Reserve will postpone any increase in interest rates until next year.

Yesterday’s figures increase the risk that President Bush will become the first president since Richard Nixon to oversee two recessions.

However, the Bush administration expressed optimism.

Commerce Secretary Carlos Gutierrez pointed to strong second-quarter growth to suggest that the economy was stronger than it appeared.

“The fact that we grew 3.3 percent in the second quarter is very different to the scenario that the really bleak forecasters would have you believe,” he said.

Outside the CareerLink office, there was ample evidence of what is known as the misery index – the sum of the unemployment and inflation rates.

It is 11.7 percent, the highest since 1991.

That was the last time Ramos had to look for a job.

Ramos said he had worked for his previous employer for 51/2 years when he was laid off. He said he believed his boss was bringing in less-expensive, immigrant workers to maintain the buildings. Immigration is an issue for him, along with the economy.

“I’m a family man, three kids. I have a newborn,” he said. His children are 6, 23 months and three weeks.

When his bosses laid him off, “I begged them” not to, he said.

He hasn’t had health insurance for four years. His fiancee, the mother of his three children, has insurance at work, and the children are covered through a government-funded program.

“Just the thought of having a toothache terrifies me,” he said.

Welder Stanley Michael Harrison, 51, lost his health insurance when he lost his job Aug. 10.

The company had been sold earlier, he said, and at first he was transferred internally, from a job paying $17 an hour to one paying $9.50.

“Nobody wants to pay,” he said.

Harrison blamed Bush and said the country couldn’t survive another four years with the Republicans.

“The whole country will go down,” Harrison said, his point echoed by Frank Dietrick, 55, a paralegal from South Philadelphia, out of work for a year.

Laid-off customer service representative Maria Jones, 51, of Southwest Philadelphia, lost her job in March, but just started looking now.

“I hope it is going to be easy,” she said, but given her age and the economy, she’s worried.

That’s why, for her as a voter, the economy and health care are the two top issues.

“At first, I was leaning toward Obama,” she said, “but I’m still listening.”

Our Perspective:

The economy still is the number one issue that is foremost in peoples mind. With a rising cost of living, (gas, utilities, food, health care being the hot button issues), the American people are focusing on who will provide the best leadership to turn this economy around.

Who is going to implement programs to reverse the tide of growing unemployment?

This is a very important presidential election. Be sure to familiarize yourself with both candidates views. Business as usual is no longer acceptable, for it has led us to this point. The new president must be able to think outside the box and implement programs that will restore confidence and jump start our economy.

Let us know your thoughts? Email george@hbsadvantage.com

 


Friday September 5, 6:04 pm ET
By Jeannine Aversa, AP Economics Writer

 

Unemployment climbs past 6 percent for 1st time in 5 years, raising odds of economic tailspin

 

WASHINGTON (AP) — The nation’s unemployment rate bolted above the psychologically important 6 percent level last month for the first time in five years — and it’s likely to go even higher in the months ahead, possibly throwing the economy into a tailspin as Americans pick a new president.A blizzard of pink slips propelled the jobless rate from 5.7 percent in July to 6.1 percent in August, the Labor Department reported Friday. Such a sharp increase is usually a strong recession warning, and it dashed investors’ hopes for a late-year recovery.

Worried about the economy and their own business prospects, employers cut payrolls by 84,000 in August, marking the eighth straight month of losses.

So far this year, a staggering 605,000 jobs have vanished — slightly less than the population of Alaska. The economy needs to generate more than 100,000 new jobs a month for employment to remain stable.

Richard Yamarone, economist at Argus Research, feared that the jobless rate would cause consumers and businesses to “move from a moderately concerned stage to outright fear” and reduce their spending even more.

A toxic trio of housing, credit and financial problems has badly shaken the economy, and the crisis shows no signs of letting up. It’s the public’s top worry, and many experts believe the situation will get worse before it gets better.

The unemployment increase means many companies will feel pressure to reduce their business investments — either in capital projects or hiring — for the rest of the year.

“Mix business caution with consumer exhaustion and you have a recipe for a real recession,” said Terry Connelly, dean of Golden Gate University’s Ageno School of Business.

At an unemployment center in St. Louis, Kimbel Adams could recite the exact date he was let go from his job as a hospital security guard — April 8. Since then, he has applied for 10 or 15 jobs, with little luck.

“Most of the jobs you can get, it’s hard to make a living off. I could always work at a fast food restaurant and struggle to pay the bills,” Adams said.

Adams, 27, said unemployment checks and irregular gigs as a nightclub bouncer help make ends meet. But eating at restaurants is a thing of the past, and Adams continues to drive a 1991 Buick in spite of the constant maintenance problems.

The number of unemployed rose to 9.4 million in August, compared with 7.1 million a year ago. Economists predict more job losses ahead, pushing the unemployment rate to 7 percent by fall of 2009, according to some projections.

Against this backdrop, a growing number of analysts predict the economy will jolt into reverse in the final three months of this year and possibly in the first three months of next year, meeting a classic definition of a recession.

The economy shrank late last year and barely budged at the start of this year. Growth picked up in the spring, thanks to brisk exports and the government’s tax rebates, which energized shoppers at home. But that rebound wasn’t expected to last.

Slower growth overseas will probably cause exports to fall off just as Americans are cutting their spending and the benefits of the rebates disappear.

Job losses were widespread at factories — especially housing-related manufacturers and automakers — as well as construction companies, retailers, mortgage brokers, real-estate firms, hotels and motels, and temporary-help firms, which are looked at as a barometer of demand for future hiring.

Those losses swamped employment gains in government, education, health care and elsewhere.

After the last recession, in 2001, the unemployment rate rose as high as 6.3 percent in June 2003.

By historical standards, the country is far from the employment carnage seen more than two decades ago, when unemployment climbed above 10 percent during President Reagan’s first term in the early 1980s.

Still, some groups are being hit harder than others. The jobless rate for blacks jumped to 10.6 percent last month, the highest since late 2005. And, the unemployment rate for Hispanics rose to 8 percent, a five-year high.

The grim report prompted Capitol Hill Democrats to renew their push for a second stimulus package. The Bush administration and other Republicans have been cool to the idea.

Presidential candidates Barack Obama and John McCain seized on the job figures to attack each other’s proposals to turn the economy around.

“The working men and women I meet every day are working harder for less,” Obama said. He advocates tax cuts for working families and investment in road, bridges and other projects to lift the economy.

McCain vowed to “fight for those that lost their jobs, savings and real-estate investments.” He said tax reductions for people and businesses, job training and measures to promote trade will help ease the economic woes.

The latest employment snapshot was worse than economists were forecasting. They were expecting payrolls to drop by around 75,000 in August and the jobless rate to tick up a notch, to 5.8 percent.

The White House was disappointed, too.

“There is no question that the labor market is not as strong as we’d like,” said press secretary Dana Perino. “We want to see the economy return to job growth, and we understand that this is a difficult time for many Americans. We want everyone who wants to work to be able to find a job.”

Wages went up modestly last month, but prices have been rising faster. Average hourly earning rose to $18.14, up 3.6 percent from last year. High food and fuel costs mean paychecks aren’t stretching as far, though.

A separate report showed a record 9.2 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, according to the Mortgage Bankers Association.

The Fed, which is struggling to curb inflation and improve growth, is expected to leave a key interest rate alone at 2 percent when it meets Sept. 16.

At its last two meetings, the Fed didn’t change the rate. Before that, though, it had aggressively cut rates to shore up the economy. Many thought the Fed might start to raise rates next year to fend off inflation. But now with employment deteriorating, some wonder whether the Fed might be forced to lower rates again.

Associated Press Business Writer Christopher Leonard in St. Louis contributed to this report.

Our Perspective:
New Jersey mailed out the new unemployment rates to all businesses in August.
Are your rates correct?
The state gives employers 30 days to contest the new rate.
Hutchinson Business Solutions offers a no cost review of your new rate. 
Many of our clients have received refunds for overpaying unemployment taxes, for we found they have been assigned the wrong rate.
Is your rate correct? Have a question about your new rate, email george@hbsadvantage.com . Visit our website to learn more about your unemployment rate www.hutchinsonbusinesssolutions.com

 

 

During the last few weeks I have noticed there is a lot of attention being paid to unemployment. Many people have logged onto our blog to find out information regarding unemployment.

 

Below you will find information about:

  • What is unemployment?
  • How do you become eligible?
  • How do they calculate the amount paid?
  • How does it effect employers account?

 

 

 

Per NJSSI

 

The unemployment rate measures the number of people actively looking for jobs as a share of those considered to be in the labor market. Unemployment affects individual well-being, and the rate of unemployment tells us about the health of the state’s economy. High unemployment means financial hardship for individuals and families. They, in turn, are less able to buy goods and services, which detracts from the strength of the economy.

 

New Jersey Eligibility

 

To be eligible for unemployment benefits, you must have worked at least 20 base weeks in covered employment or you must have earned $7,200. For weeks worked in 2006, the amount needed to establish a base week is $123; for weeks worked in 2007, the amount is $143; and for weeks worked in 2008, the amount is $143.  These wages must have been earned during a 52 week period that is called a base year.

Base Year Period

Your regular base year period consists of 52 weeks that is determined by the date of your claim. The chart below shows what your regular base year period would be if you filed your claim any day between January 1, 2008 and December 31, 2008.

If your claim is dated in:

Your claim is based on
employment from:

January 2008
February 2008
March 2008

October 1, 2006
to
September 30, 2007

April 2008
May 2008
June 2008

January 1, 2007
to
December 31, 2007

July 2008
August 2008
September 2008

April 1, 2007
to
March 31, 2008

October 2008
November 2008
December 2008

July 1, 2007
to
June 30, 2008

Example: Mary Jones filed her unemployment claim as of May 11, 2008.  Her month and year appear in the second box on the left of the chart. This means that her Base Period is from January 1, 2007 to December 31, 2007.

If you do not meet the above requirements but you worked at least 770 hours in employment involving the production and harvesting of agricultural crops during your base year, you may still be eligible for benefits.
Alternate Base Year Period

If your earnings during your regular base year period do not meet the qualifications for a claim, earnings in other base year periods will be reviewed. You may qualify for benefits if you worked at least 20 base weeks (a base week in 2006 is minimum weekly earnings of $123; a base week in 2007 is minimum weekly earnings of $143; and a base week in 2008 is minimum weekly earnings of $143), or a total of $7,200 in any one-year period in the last 1 1/2 years for a claim dated in calendar year 2008. Generally, if you have established 20 base weeks or earned at least $7,200 in any one-year period in the last 18 months, you may qualify for a claim.

Figuring Out Your Benefit Amount
How Much Can You Collect?

Weekly Benefit Rate

The amount of unemployment benefits you may receive each week is your Weekly Benefit Rate (WBR). The amount will be 60% of the average weekly earnings during your base year period, up to a maximum of $560 (in 2008). The maximum amount may change each year.

If you are not entitled to the maximum amount of weekly benefits, you may be able to increase your entitlement with Dependency Benefits.

Total Amount

The total amount of benefits you may collect is called your Maximum Benefit Amount (MBA). The MBA is equal to the WBR times the total number of weeks worked in the base year period. Generally, for every week you worked during your base year period, you may be entitled to a week of benefits, up to a maximum of 26 times your Weekly Benefit Rate.

Example 1: An individual worked 20 weeks during the base year period. His Weekly Benefit Rate is $200. His Maximum Benefit Amount will be $200 times 20 weeks ($4,000).

Example 2: An individual who is entitled to a maximum 26-week claim (because he worked at least 26 or more weeks during the base year period) at a Weekly Benefit Rate of $300 will have a Maximum Benefit Amount of $7,800. (This is because $300 times 26 weeks = $7,800.)

Your unemployment claim will be in effect for approximately one year from the date of your claim. If you return to work before you collect all the benefits in your claim, and then become unemployed again before the one-year period ends, you should immediately reopen your claim (see the section entitled “Apply for Benefits”). If your one-year benefit year expires before you collect all the benefits in your claim, the remainder cannot be paid to you. You would then have to file a new claim for benefits.

 

 

 

Employers:

 

State unemployment laws were set up to help both employees and employers. However, Employers must beware to not take everything the state does as gospel.

 

The State of New Jersey has a 12 % error rate in the payment of claims.

 

Although an employee may be eligible to collect unemployment, the state may be paying either too much money or not properly allocating the cost of the benefit.

 

Your unemployment account is very much like having a checking account with the state.

 

The State annually determines and assigns the rate to your company. The rate is based on the relationship between the current reserve balances to the average taxable wages paid by the employer.

 

This rate determines how much an employer will be paying into their account for the next year.

 

The State also notifies you as to how much they have paid out of your account in claims.

 

The balance left in the account is called a reserve. (This is your checking account balance).

 

Employers should be looking at their current rates and asking, are they correct?

 

If your company has been thru a merger or an acquisition in the last 3 years there is a 50% chance that you have been assigned the incorrect rate and that you are overpaying unemployment taxes.

 

We are finding many companies (our clients) are overpaying unemployment taxes and have received refunds.

 

Are your unemployment rates correct?

 

Are you overpaying unemployment taxes?

 

Do you qualify for a refund?

 

All you have to do is contact us and ask.

 

We offer a no cost review of your current rates.

 

Do you have a question?

 

Let us know your thoughts?

 

You may email george@hbsadvantage.com

 

Hutchinson Business Solutions ……Your CFO on the Go.

 

Creating Opportunities Today,…Defining Savings for Tomorrow.

Visit http://www.hutchinsonbusinesssolutions.com/ to learn more about saving opportunities available for your company.

 

Spread the good news….. share this information with a friend.