How a layoff can affect unemployment taxes next year and in the long-term along with how one can reduce unemployment taxes after a layoff with outplacement. Download the complete whitepaper http://info.risesmart.com/pb-dl-the-unspoken-cost-of-layoffs
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LAYOFFS: Are You Cutting Costs Now Only to Drive up TAXES Later? Here’s how layoffs can affect your unemployment tax responsibility—and what to do about it.
“In business nothing can be said to be certain, except layoffs and taxes.”
The more people you lay off and the longer people are laid off, the more unemployment claims made against your reserves—and the higher your taxes the following year.
Employers are responsible for at least a portion of their former employees’ unemployment claims for a period of time after that employee has landed a new job. If the former employee is laid off by their new company, former employers pay a percentage of that employee’s unemployment claims. This further depletes the unemployment reserves and drives up unemployment tax in the coming year.