Arizona imposes two-year employer tax increase
Arizona Governor Jan Brewer recently signed legislation that will impose a surcharge on what companies pay in unemployment insurance after the state's unemployment trust fund went broke over a year ago, despite the fact that it was meant to be self-supporting, according to the East Valley Tribune.
The state borrowed money from the federal government after its unemployment benefits fund was depleted. At the height of the recession, Congress agreed to loan the money without interest, but Arizona is now incurring charges at a rate of approximately 4 percent and still owes almost $333 million.
The fee - which will be in addition to the current annual employee tax of $56 - will be capped at $28 for each worker on the payroll, and is expected to rise to $42 next year. Employers are likely to begin being billed sometime this fall.
If the state still owes money by the end of next year, the federal government could call in the loans, according to the Arizona Republic. This will likely lead to a larger tax hike and cost increase for employers.
The state borrowed money from the federal government after its unemployment benefits fund was depleted. At the height of the recession, Congress agreed to loan the money without interest, but Arizona is now incurring charges at a rate of approximately 4 percent and still owes almost $333 million.
The fee - which will be in addition to the current annual employee tax of $56 - will be capped at $28 for each worker on the payroll, and is expected to rise to $42 next year. Employers are likely to begin being billed sometime this fall.
If the state still owes money by the end of next year, the federal government could call in the loans, according to the Arizona Republic. This will likely lead to a larger tax hike and cost increase for employers.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.