Florida employers already have a lot to worry about in 2010 — a sluggish economic recovery first and foremost. Now, add to that an unemployment compensation tax rate hike that, in its worst case, could increase their minimum payment by more than 1,000 percent, from $8.40 per employee to $100.30 per employee.
The rate change, which went into effect Jan. 1 unbeknownst to many employers, will cost them an additional $1.2 billion in 2010, according to David Daniel, vice president of government affairs at the Florida Chamber of Commerce.
“To say that we’re very worried about it is mildly understating it,” he said.
The new rate was calculated by the Florida Department of Revenue for Florida’s Unemployment Compensation Trust Fund, which uses automatic triggers to increase or decrease unemployment compensation taxes based on its current balance. When it reaches a low of 4 percent of the taxable payrolls, it goes up, and when it reaches 5 percent of the taxable payrolls, it goes down. When Florida’s unemployment rate spiked to 11.2 percent in October — the highest it’s been in 34 years — it triggered a tax increase.
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Illinois Enters a State of Insolvency
As Illinois' fiscal crisis deepens, the word "bankruptcy" is creeping more and more into the public discourse.
"We would like all the stakeholders of Illinois to recognize how close the state is to bankruptcy or insolvency," says Laurence Msall, president of the Civic Federation, a fiscal watchdog in Chicago.
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The Night Chicago Died
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I'm really onto that word trigger; albeit for another reason.
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Being from Illinois....the State should declare bankruptcy. We're something like $12 billion in debt and the State government is so entrenched so much nepotism and so many special interest groups running things that it's unlikely the ship can be turned around. It's just a matter of time.
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