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Unemployment insurance rates, anyone know the details?

Discussion in 'Business Operations' started by Az Gardener, Jan 8, 2007.

  1. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    I have not had to deal much with unemployment issues. I and an employee mutually agreed that after decorating season was over he was going to work elsewhere. Nothing bad just a slowdown on my part and opportunity for him to make more money in another trade.

    Today I get a letter and apparently he has applied for unemployment. Letter says he is entitled to up to 6-K in benefits ;) I know that won't come out of my pocket now, but what will be the effect on my rates? Yes I know they will go up but by what %?

    Does anyone have any detailed numbers or know who I should call to find out. I use Paychex for my payroll so I don't even know who carries my unemployment insurance or what the rate is now. I'm sure it is low as I have not had anyone in 5-yrs file for unemployment with my solo company.

    Calling Rodfather and other more qualified accountant types. Thanks in advance Dave
  2. RHayden

    RHayden LawnSite Member
    Messages: 123

    From my recent Annual Contribution Rate Determination Report:

    Benefit Cgharges x Benefit Conversion Factor = Converted Benefit Charges/Taxable Wages = Benefit Ratio x State Experience Factor + Fund Building Rate = Contribution Rate.

    Makes perfect sense, doesn't it.

    Seriously, it will vary from state to state but your experience factor sounds like it is pretty low. We pay the max rate because most of my guys (including myself) get laid off for some portion of the winter. See if there is a local Dept. of Employment Security near by.

    PM me and I can email you the reverse side of this report which explains the formula in something close to English.
  3. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

    I am at 7% (2 guys on unemployment.) I would not worry about it. From the way you talk about your customers and how well everything is going for you, you probably won't even notice it. If you need any PT work make sure you call and offer it to him.
  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    If it is a % of my overall payroll even a 1% increase is a lot of money. My payroll last year was over 200-K.

    I will give it some time and see if I get a simple answer before I begin PM's and phone calls. There are lots of smart people on lawn site they just don't visit every day so I will give this some time.
  5. RHayden

    RHayden LawnSite Member
    Messages: 123

    Try checking with whoever files your quarterly reports. They should have all the info you need.
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    I live in texas and it is 2.7% on the first 9K earned by each employee. It will go up or down from there after a few years.

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