Story that is flying under the radar could mean higher taxes for Hoosier businesses and loss of jobs. The Journal Gazette is reporting federal unemployment taxes
could jump as Indiana pays back over $2 Billion it borrowed to pay for unemployment benefits.
Businesses around the state have been paying hundreds of millions in additional taxes every year because of an unemployment tax penalty since 2011.
The federal unemployment tax penalty costs every business in the state $105 per employee this year. It will rise to $126 per employee next year if not every dollar is paid back by Nov. 9.
Rep. Dan Leonard, R-Huntington – the House expert on Indiana’s unemployment trust fund – said if the State Budget Committee finds the money to pay off the loan this year it saves employers $327 million next year.
The good news the state has done a fairly good job in paying down the loan and could pay it off this year.
Leonard said estimates showed the loan would be at about $369 million by the end of the year. As of last week, the state owed $547 million.
Read the rest of the story here.