Thursday, February 17, 2011

Obama plan could bring employers higher taxes to pay for unemployment aid

The AP reports that U.S. employers "could face higher taxes in 2014 under an Obama administration budget proposal designed to help states hard hit by the recession and the weak recovery to refill their unemployment insurance funds and repay money borrowed from the federal government."

According to the story, "the proposal would give states the choice of increasing tax payments from businesses, altering their benefits or a combination of both." The AP notes that "the administration plan would increase the income level that is subject to unemployment insurance taxes from $7,000 to $15,000," and that the "states would be allowed to use the new income level to raise more money from employers." The story reports that 30 of the states owe the federal government $42 billion that was borrowed to make payments to individuals claiming unemployment.

Larry Kopsa CPA