Managing Unemployment Insurance Tax Liability and Lowering Overhead

• Date: November 21, 2010
• Source: Admin

Unemployment insurance tax liabilities have skyrocketed. As a result of the recession, employer-paid UI taxes in 2010 and for the next few years will be significantly higher than in previous years – for some employers tax liabilities have increased by more than 300%. No longer a “nuisance tax,” higher UI taxes are having a negative effect on labor costs, cash flow, and profitability. Higher UI taxes are altering hiring and retention decisions and affecting other talent management decisions. Higher UI taxes are increasing employers’ interest in effective UI cost control techniques. One technique to measure and allocate an organization’s UI taxes liabilities more effectively is internalized experience rating (IER).

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