3/3/10

Higher Unemployment Taxes are Coming

RI employers are going to get socked by higher unemployment costs next year - to the tune of $36 million because of all the borrowing that RI is doing to keep its unemployemmnt fund afloat and paying benefits to almost 40,000 out of work individuals. Here's how the $36 million stacks up:  • $ 18 million surtax to replenish the fund • $9 million interest payments on loans from the federal government • $9 million additional in federal unemployment tax (essentially a penalty • $9 million additional in federal unemployment tax (essentially a penalty for outstanding loans already received that have not been paid back) 
 
The state has borrowed $163 million to date, and may borrow over $230 million by this year's end. Unemployment in RI is not expected to ease significantly for a few more years, if even then.

This is especially bad news for RI businesses. It's hard enough to run a business in this state with all the regulations, fees and taxes as they are. Now we will have to shoulder this burden too. The state gives lip service to how important small businesses are to the economic health of the state while actions to actually change things for the better are few and far between. Now "in between" we are facing higher unemployment taxes for the forseeable future.

Again, it makes you wonder why anyone would want to open a new business here.