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

Friday December 5, 12:41 pm ET
By Jeannine Aversa, AP Economics Writer

 

Employers ax 533,000 jobs in Nov., most in 34 years; unemployment rate rises to 6.7 percent

 

WASHINGTON (AP) — Skittish employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, dramatic proof the country is careening deeper into recession.

The new figures, released by the Labor Department Friday, showed the crucial employment market deteriorating at an alarmingly rapid clip, and handed Americans some more grim news right before the holidays. The net loss of more than a half-million jobs was far worse than analysts expected.

As companies throttled back hiring, the unemployment rate bolted from 6.5 percent in October to 6.7 percent last month, a 15-year high.

“These numbers are shocking,” said economist Joel Naroff, president of Naroff Economics Advisors. “Companies are sharply reacting to the economy’s problems and slashing costs. They are not trying to ride it out.”

The unemployment rate would have moved even higher if not for the exodus of 422,000 people from the work force. Economists said many of those people probably abandoned their job searches out of sheer frustration. In November 2007, the jobless rate was at 4.7 percent.

The U.S. tipped into recession last December, a panel of experts declared earlier this week, confirming what many Americans already thought.

Since the start of the recession, the economy has lost 1.9 million jobs, the number of unemployed people increased by 2.7 million and the jobless rate rose by 1.7 percentage points. More evidence that the labor pain is far from over came Friday when General Motors Corp. said it will lay off another 2,000 workers as it cuts shifts at three car factories starting in February due to slowing demand for their products.

President George W. Bush, who used the word “recession” for the first time to describe the economy’s state, pledged Friday to explore more efforts to ease housing, credit and financial stresses.

“There is still more work to do,” Bush said. “My administration is committed to ensuring that our economy succeeds.”

President-elect Barack Obama said the dismal job news underscored the need for forceful action, even as he warned that the pain could not be quickly relieved.

“There are no quick or easy fixes to this crisis … and it’s likely to get worse before it gets better,” Obama said. “At the same time, this … provides us with an opportunity to transform our economy to improve the lives of ordinary people by rebuilding roads and modernizing schools for our children, investing in clean energy solutions to break our dependence on imported oil, and making an early down payment on the long-term reforms that will grow and strengthen our economy for all Americans for years to come.”

To provide relief, the Bush administration will continue to concentrate on ways to bust through a credit jam that is feeding prominently into the economy’s problems, Commerce Secretary Carlos Gutierrez told The Associated Press in an interview. “We’re going to stay focused on that like a laser,” he said.

Elsewhere Friday, the Mortgage Bankers Association said a record one in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure at the end of September. The percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter, and from 7.3 percent a year earlier.

On Wall Street, stocks slid. The Dow Jones industrials were down 130 points in afternoon trading.

Job losses last month were widespread, hitting factories, construction companies, financial firms, retailers, leisure and hospitality, and others industries. The few places where gains were logged included the government, education and health services.

The loss of 533,000 payroll jobs was much deeper than the 320,000 job cuts economists were forecasting. The rise in the unemployment rate, however, wasn’t as steep as the 6.8 percent rate they were expecting. Taken together, though, the employment picture clearly darkening.

The job reductions were the most since a whopping 602,000 positions were slashed in December 1974, when the country was in a severe recession.

All told, 10.3 million people were left unemployed as of November, while the number of employed was 144.3 million.

Gary Cope, 33, this week lost his communications job at Roanoke, Va.-based high-tech research and development company Luna Innovations Inc.

Cope was called into a meeting first thing Thursday morning with two administrators and a human resources representative. Their message: He was being laid off, for financial reasons, effective immediately.

He left with a box of his belongings and about two months’ severance. As Cope walked out the door, all he could think was, “I have a 3-year-old son and I’m a single dad.”

“I came home and did my initial pity party, then I got myself together, talked to my family and went right to work” rewriting his resume and sending it out, Cope said. “My family has been very supportive, they’ve let me know I’ll get through this and they won’t let me drown.”

Job losses in September and October also turned out to be much worse. Employers cut 403,000 jobs in September, versus 284,000 previously estimated. Another 320,000 were chopped in October, compared with an initial estimate of 240,000.

Employers are slashing costs as they cope with sagging appetites from customers in the U.S. and in other countries, which are struggling with their own economic troubles.

The carnage — including the worst financial crisis since the 1930s — is hitting a wide range of companies.

In recent days, AT&T Inc., DuPont, JPMorgan Chase & Co., as well as jet engine maker Pratt & Whitney, a subsidiary of United Technologies Corp., and mining company Freeport-McMoRan Copper & Gold Inc. announced layoffs.

Fighting for their survival, the chiefs of Chrysler LLC, General Motors and Ford Motor Co. returned to Capitol Hill Friday to again ask lawmakers for as much as $34 billion in emergency aid.

Workers with jobs saw modest wage gains. Average hourly earnings rose to $18.30 in November, a 0.4 percent increase from the previous month. Over the year, wages have grown 3.7 percent, but paychecks haven’t stretched that far because of high prices for energy, food and other items.

Worn-out consumers battered by the job losses, shrinking nest eggs and tanking home values have retrenched, throwing the economy into a tailspin. As the unemployment rate continues to move higher, consumers will burrow further, dragging the economy down even more, a vicious cycle that Washington policymakers are trying to break.

Federal Reserve Chairman Ben Bernanke is expected ratchet down a key interest rate — now near a historic low of 1 percent — by as much as a half-percentage point on Dec. 16 in a bid to breathe life into the moribund economy. Bernanke is exploring other economic revival options and wants the government to step up efforts to curb home foreclosures.

Treasury Secretary Henry Paulson, whose department oversees the $700 billion financial bailout program, also is weighing new initiatives such as tapping the second half of that rescue money to ease the economic crisis.

Obama, who takes office on Jan. 20, has called for a massive economic recovery bill to generate 2.5 million jobs over his first two years in office. House Speaker Nancy Pelosi, D-Calif., has vowed to have a package ready on Inauguration Day for Obama’s signature.

The measure, which could total $500 billion, would bankroll big public works projects to create jobs, provide aid to states to help with Medicaid costs, and provide money toward renewable energy development.

At 12 months and counting, the recession is longer than the 10-month average length of recessions since World War II. The record for the longest recession in the postwar period is 16 months, which was reached in the 1973-75 and 1981-82 downturns. The current recession might end up matching that or setting a record in terms of duration, analysts say.

The 1981-82 recession was the worst in terms of unemployment since the Great Depression. The jobless rate rose as high as 10.8 percent in late 1982, just as the recession ended, before inching down.

Given the current woes, the jobless rate could rise as high as 8.5 percent by the end of next year, some analysts predict. Still, the unemployment rate often peaks after a recession has ended. That’s because companies are reluctant to ramp up hiring until they feel certain the recovery has staying power.

Most jobs cut in more than five years; jobless rate at 6.1 percent

updated 2:27 p.m. ET, Fri., Oct. 3, 2008

WASHINGTON – Jobs are vanishing at the fastest pace in more than five years with pink slips likely to keep stacking higher in the months ahead, an urgent signal the country may be careening toward a deep and painful recession just as Americans prepare to elect a new president.

Whether that’s Democrat Barack Obama or Republican John McCain, one of them will be dealing with the weakest employment climate in years.

Increasingly skittish employers dropped the ax even harder in September, chopping payrolls by 159,000 — more than double the cuts made just one month before. It was the ninth straight month of job losses. A staggering 760,000 jobs have disappeared so far this year.

The Labor Department’s report, released Friday, also showed that the nation’s unemployment rate was 6.1 percent, up sharply from 4.7 percent a year ago. Over the last year, the number of unemployed people has risen by 2.2 million to 9.5 million.

“Washington, the labor market has a problem,” said Joel Naroff, president of Naroff Economic Advisors. “Firms are hunkering down and running as lean as possible. … We are likely to see more months of job losses before conditions turn around.”

The unemployment rate for blacks shot up to 11.4 percent, the highest since late 2003.

Even with Congress’ unprecedented $700 billion financial bailout, the faltering economy and the jobs markets probably will get worse. Many believe the economy will jolt into reverse later this year — if it hasn’t already_ and will stay sickly well into next year.

The unemployment rate could hit 7 or 7.5 percent by late 2009. If that happens, it would mark the highest since after the 1990-91 recession. Some economists say the jobless rate could rise even more before the situation starts to get better.

Pressure is growing on Federal Reserve Chairman Ben Bernanke to do an about-face and lower a key interest rate in a bid to revive the economy. Many now think that will happen at the Fed’s next meeting on Oct. 28-29 or even earlier.

The hope riding on such a move would be to spur nervous consumers and businesses to spend more freely again. They’ve clamped down as housing, credit and financial problems intensified last month, throwing Wall Street into chaos.

Friday’s employment snapshot is the last before America goes to the polls in November.

Mounting job losses, shrinking paychecks, shriveling nest eggs and rising foreclosures all have weighed heavily on American voters.

The economy is their No. 1 concern. An Associated Press-GfK poll earlier this week showed that likely voters now back Obama 48 percent to McCain’s 41 percent. They believe Obama is better suited to lead the country through the financial turbulence.

“I will rebuild the middle class and create millions of new jobs by investing in infrastructure and renewable energy,” vowed Obama.

 

 

McCain pledged to “open markets around the globe for our products, cut taxes and expand domestic production of energy … I will create jobs and get the economy on the right track.”

White House spokesman Tony Fratto called the latest employment figures disappointing “but not unexpected given the shocks to the economy.”

The 159,000 tally of total job losses — government and private payrolls — was the most since March 2003, when the labor market was still struggling to get back on its feet after being knocked down by the 2001 recession. The picture was even darker for private employers. They cut 168,000 jobs last month, the 10th month of such losses.

The pink slips were widespread.

Manufacturers (especially auto makers), home builders, retailers, securities and investment firms, hotels and motels, accountants and bookkeepers, architects and engineers, and legal services all cut back. So did temporary help firms — usually a barometer of future hiring. That overwhelmed employment gains by the government, in education, health and elsewhere.

Cost-cutting employers are getting rid of workers as companies chafe under all the economy’s problems. Companies announcing layoffs in September included Hanesbrands Inc., Hewlett-Packard Co., Schering-Plough Corp., Alaska Airlines and Alcoa Inc.

Spooked consumers and businesses have pulled back so much that some analysts fear the economy could stall out — or even worse — shrink in the July-to-September quarter. Many predict the economy will contract in both the final quarter of this year and the first quarter of next year, meeting the classic definition of a recession.

“The economy was on the way down even before the latest tightening in the credit crunch,” said Nigel Gault, economist at Global Insight.

Wage growth for workers is slowing, meaning they’ll be more hard-pressed to spend and help the ailing economy.

Average hourly earnings rose to $18.17 in September, a 0.2 percent increase from the previous month. That was half the pace logged in the previous month. Over the past year, wages have grown 3.4 percent, but paychecks aren’t stretching as far because of high food and energy prices.

Strains on Americans were sorely evident. The number of consumer bankruptcy filings rose about 29 percent in September from a year ago, the American Bankruptcy Institute reported Friday.

The financial crisis that intensified in September is forcing a seismic shake-up on Wall Street.

Lehman Brothers, the country’s fourth-largest investment bank, filed for bankruptcy protection. A weakened Merrill Lynch, deciding it couldn’t go it alone anymore, found help in the arms of Bank of America. AIG was thrown a financial lifeline. And, the last two investment houses — Goldman Sachs and Morgan Stanley — decided to convert themselves into commercial banks to better weather the financial storms. The number of banks that have failed this year are up sharply from last year. On Friday, Wachovia Corp. said it will be acquired by Wells Fargo & Co. wiping out Wachovia’s previous plan to sell its banking operations to rival suitor Citigroup Inc.

 

 

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.

U.S. Initial Jobless Claims Rose 22,000 to 378,000  

As reported in Bloomberg .com

March 20 (Bloomberg) — The number of Americans filing first-time claims for unemployment insurance rose last week and the total number on benefit rolls reached the highest since August 2004, signs that firings are increasing.

Initial claims for benefits increased 22,000 to 378,000 in the week ended March 15, more than economists forecast and the highest since the week of Jan. 26, from 356,000 the prior week, the Labor Department said in Washington. The number of people staying on benefits rose to 2.865 million from 2.833 million.

U.S. companies are cutting staff as the biggest housing slump in a quarter century, tighter credit and mounting financial losses push the economy toward a recession. The Federal Reserve, noting labor markets had “softened” as it cut interest rates earlier this week, said it would act “as needed” to promote growth.

“This is pretty much what it looks like heading into recession,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi in New York, said in an interview with Bloomberg Television. “It’s a bad number for the Fed. This is something that might keep them cutting rates.”

Treasuries were little changed after the report, with the benchmark 10-year note yielding 3.33 percent.

Weekly claims were forecast to rise to 360,000 from 353,000 initially reported in the prior week, according to the median projection of 39 economists in a Bloomberg News survey. Estimates ranged from 345,000 to 380,000.

From a company’s perspective

Many companies look to firing or laying off employees to address a downfall in the economy. This may address an immediate need but many fail to realize that this decision lives with them for 4 years.

First, if an employee collects, the payments will be paid out of the State mandated company’s account. The state unemployment programs are set up to mirror that each company has their own checking account.

The state assigns a rate that tells you how much will be put into the account and then notifies you how much has been paid out in claims.

The amount paid out directly affects the balance or reserves held in the account and have a direct relationship in determining what your rate will be over the next 4 years. The state makes a calculation based on the dollar amount of claims paid out, the reserves needed to support future claims as they relate to the taxable wage base.

 Confused yet?

That is the way the states want you to view it.

Should you have any questions about the unemployment or claim process, feel free to contact us. We deal with these issues on a daily basis.

george@hbsadvantage.com

We find many clients have been assigned the wrong rate and our overpaying unemployment taxes.

To learn more visit our website.

www.hbsadvantage.com

We look forward to discussing this with you.

What’s it worth?

January 11, 2008

Just in the last week, firms operating in Pennsylvania received their new Unemployment Tax Rate notices in the mail…….. Happy New Year!

 What is your new rate? 

Many people don’t realize it but Unemployment is the 2nd highest employer mandated tax.

Mistakenly, it is taken as just another cost of doing business.

 The whole Unemployment process can be likened to having a checkbook with the State.

  • The State tells you what your rate is.
  • The State tells you how much money you should be depositing in this account over the next year.
  • The State tells you how much they have taken out of your account to pay claims.

 Who is holding the State accountable that the rate is correct?

 Who is holding the state accountable that the claim amount taken from your account is correct? 

That is what we do!

The national average for overpaying Unemployment Claims is 9.5%, in some states it is over 25%.

Maybe this is something you should be keeping an eye on?

This is just not another cost of doing business. 

Did your rate increase?

I was speaking to a prospective client the other morning. They told me their Unemployment rate went up 2%. Doesn’t sound like much?

Well 2% to this small company means an additional $24,000 in Unemployment taxes for the next year.

How much additional revenue will be needed to cover this cost?

Stop the runaway train! Start asking questions!

Is your current unemployment rate correct?

Why not ask us?

We will do a no cost analysis of your current rate.

We have a 90% success rate reducing unemployment cost and getting refunds for overpayments.

 You may fax your current rate notice to our office 856-857-1233 for a no cost analysis of your current rate. 

Call 856-857-1230 or email us george@hbsadvantage.com to discuss your current unemployment rate. 

Hutchinson Business Solutions…Your Business Tax Advocate.

Our clients do not overpay taxes!