North Carolina currently has over $3 billion in unemployment insurance debt, which is owed to the federal government. This debt and the increasing tax implications will have a major impact on NC business and their bottom line. The UI debt is the most immediate challenge to our state’s job creators.
Nov. 10 Federal Unemployment Insurance Debt Deadline > UI Taxes Going Up
On November 10, North Carolina faces the deadline to repay the federal UI loan in order to avoid additional tax penalties. As in 2011, employers will face an additional FUTA tax of .3 percent, or about $21 per employee. That means business will be hit with a tax increase on every job from 63 dollars to 84 dollars per employee! This recent Triangle Business Journal articletakes a look at the impact this is having on businesses and different proposals to address the issue, including the NC Chamber UI Study. Additionally, the Times-News in Hendersonville looked at these tax increases and reports that local businesses say that increases of this magnitude could disable the state’s economy and restrict hiring. The NC Chamber’s Vice President of Government Affairs Gary Salamido discussed the importance of a robust reemployment system in looking at a comprehensive solution. Read the Times-News article here.
ACTION ITEM – We need your support and the help of employers statewide to make significant change for North Carolina business. Join the Reemployment Coalition and lend your organization’s name to this support list if you want to stop UI waste and abuse, and see North Carolina develop a comprehensive solution to our state’s UI crisis. Contact NC Chamber Director of Governmental Affairs Jake Cashion, at jcashion@ncchamber.net or (919) 836-1411, by Friday, November 16.
Thank you for your support; it is critical to shaping a business-driven solution!