What effect do higher unemployment insurance taxes have on employees?
Employer payroll taxes are to some extent part of overall compensation, so if employers are paying a small amount more on compensation that may impact their bottom line but it’s not directly affecting their employees. Just like any additional cost of doing business, this is going to be an increase in the payroll tax, starting July 1. Q: How can employers keep their unemployment insurance tax bill low? A: The first is to look at ways to make layoffs of employees a very last resort. Certainly many employers have resorted to wage reductions or furloughs or partial cuts in hours that can have that impact, that can enable them to reduce total compensation. Q: Doesn’t that exacerbate the problem of the so-called underemployed, those who are working enough to make it an impediment to looking for another job, but not enough to keep up with expenses? A: I think most employees would choose keeping their job — and with it their benefits and their access to health insurance and everything else, e
