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