Georgia businesses will pick up tab for unemployment loan (Atlanta: insurance, employment)

[LynnHarris]

I wanted to post this update for those who may be facing a potential lay off in the near future. Based on this article, it seems that there will be some changes in regards to filing for unemployment in metro-Atlanta.




Georgia businesses will pick up tab for unemployment loan


ATLANTA — Georgia business owners may get sticker shock when they open up tax bills from the federal government.


Channel 2 Action News has learned the federal government plans to double the unemployment insurance tax on every private employee. The rate increase is intended to offset a $720 million loan that the state of Georgia borrowed to pay unemployment benefits.


Channel 2's Lori Geary discovered that many Georgia lawmakers did not know about the tax increase.
Geary also learned that the state may also have to cut unemployment benefits to make up some of that loan.


Starting Jan. 1, the federal unemployment insurance tax that Georgia business owners pay will double from $21 to $42. Butler said his office will start sending out notifications about the increase soon.


The unemployment insurance tax increase will only cover a small portion of the loan, so to chip away at the principal Butler is proposing that unemployed Georgians wait a week before receiving benefits. Butler told Geary he also wants to reduce the amount of weeks the state employment benefits run from 26 to 20 and reduce the top tier benefit from $330 to $300...


Full Story: http://www.wsbtv.com/news/news/georgia-businesses-will-pick-tab-unemployment-loan/nF3Kd/

[gt6974a]

So double it on private employees but not public?!? And all that money went to save which jobs, fire, police, teachers, etc. If you're going to argue the 'fair share argument', then you better hit the govt. workers as well.

Also, one more reason to pay illegals under the table.

[MathmanMathman]

Raising the tax from $21 to $42 sounds unbelievably cheap.

[arjay57]

Originally Posted by gt6974a

So double it on private employees but not public?!?

The article is a little misleading when it talks about "plans to double the unemployment insurance tax on every private employee."

Unemployment taxes are actually paid by the employer, not by the employee. What they should have said is that private employers will have to pay twice as much tax PER employee.

[rcsteiner]

Originally Posted by LynnHarris

The unemployment insurance tax increase will only cover a small portion of the loan, so to chip away at the principal Butler is proposing that unemployed Georgians wait a week before receiving benefits. Butler told Geary he also wants to reduce the amount of weeks the state employment benefits run from 26 to 20 and reduce the top tier benefit from $330 to $300...

Wow. $330/week (before taxes) is pretty poor as it is compared to many other states. I know UI intended as temporary assistance, not something to live on, but life would be difficult enough for someone stuck on that if they were making any kind of a decent living before, and the average job search in the county right now is longer than 6 months. If you're lucky enough to have an emergency fund still intact these days, perhaps no big deal, but...

[arjay57]

Originally Posted by rcsteiner

Wow. $330/week (before taxes) is pretty poor as it is compared to many other states. I know UI intended as temporary assistance, not something to live on, but life would be difficult enough for someone stuck on that if they were making any kind of a decent living before, and the average job search in the county right now is longer than 6 months. If you're lucky enough to have an emergency fund still intact these days, perhaps no big deal, but...

Think about us poor slobs who are self-employed or independent contractors. We get zip -- no unemployment benefits whatsoever.

It's a double whammy if you were a business owner. Although you paid unemployment insurance for all your employees, they get it but you don't.

And there are millions of us. We never even get a nod in discussions about unemployment.

[Nast]

Originally Posted by arjay57

It's a double whammy if you were a business owner. Although you paid unemployment insurance for all your employees, they get it but you don't.

The small business owner carries most of the risks, but also stands to reap most of the rewards, so it seems somewhat of a fair tradeoff. I know some SBOs who ran successful companies for years only to lose everything in this recession. I also know some SBOs who sold their companies for millions while their employees got nothing.

[rcsteiner]

Originally Posted by arjay57

Think about us poor slobs who are self-employed or independent contractors. We get zip -- no unemployment benefits whatsoever.

Yes, I know, which is one reason why I've not become one myself (and why I tend to view you people with a certain amount of respect for doing so).

[hspinnler]

Originally Posted by Nast

The small business owner carries most of the risks, but also stands to reap most of the rewards, so it seems somewhat of a fair tradeoff.

Something about this statement disturbs me. It's as those on the outside looking in think SBO need to be kept in check tax- & benefits-wise for taking risks, working extremely hard and having some success come from it.

I fund my own retirement and pay for my family's healthcare. Even as a 1 ee S Corp, I have monthly payroll taxes. When I don't work, the cash flow does too. I don't get paid holiday or sick days.

[ecuresident]

Originally Posted by rcsteiner

Wow. $330/week (before taxes) is pretty poor as it is compared to many other states. I know UI intended as temporary assistance, not something to live on, but life would be difficult enough for someone stuck on that if they were making any kind of a decent living before, and the average job search in the county right now is longer than 6 months. If you're lucky enough to have an emergency fund still intact these days, perhaps no big deal, but...

This comes out to $1 more per hour than minimum wage (if you divide it by 40 hours) and you dont have to pay any taxes on it (im assuming). There are tons of people that live on that everyday- even before the recession so I dont see how that is that bad, especially because like you said it isnt intended to be something to live on, just get you by. I personally do not think if you are a educated professional that the search is longer than 6 months, that is more for the uneducated, which are used to making less in the first place (of course not low like minimum wage). I recently had 3 friends that were unemployed they all found jobs within 2 months, if may not have been their dream job, but it paid the bills. 2 were in finance, while the other is an office manager for medical offices. The problem I see is that people are too picky- it took the office manager a lot longer because some of the jobs she found were "too far from her house", so she sat on unemployment instead of driving an extra hour. That is ridiculous to me.