Monday, September 7, 2020

"unemployment taxes are 'probably the first of many bills' from the pandemic"

 From the Milford Daily News, articles of interest for Franklin: 

"With unemployment soaring, state lawmakers are considering ways to soften the blow from a major impending increase in the taxes employers pay toward the state’s unemployment system, a jump in costs that one business group described as a “pretty staggering.”

With the unemployment insurance trust fund suddenly facing a multibillion-dollar deficit over the next four years, the contributions required from Massachusetts businesses are set to increase nearly 60% when the calendar turns to 2021 and then continue growing at a smaller rate through 2024.

Those higher taxes -- estimated at an average of $319 more per qualifying employee next year -- will be due starting in April, raising concerns that the sharp uptick will put a drag on the economic recovery from the ongoing COVID-prompted recession and make it more difficult for employers to bring back jobs they cut.

Christopher Carlozzi, state director for the National Federation of Independent Business Massachusetts, said his group and the employers with which it works view the projected increases as “a looming crisis.”

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