RI to increase unemployment insurance taxes
PROVIDENCE, R.I.—Rhode Island employers can expect to pay an estimated $2.5 million more next year in unemployment insurance taxes intended to replenish the state's jobless fund.
The Providence Journal reports ( http://bit.ly/uGz8Jy) that the higher taxes will come from nearly 31,000 Rhode Island businesses that pay into the state's unemployment trust fund. It was depleted as unemployment rose during the recession.
The tax increases are part of an overhaul.
Laura Hart, spokeswoman for the Department of Labor and Training, said the employer tax will be linked to what employees earn. She says that should help the fund keep pace with rising costs.
Roland Benjamin, who served on a panel that considered options for making the trust fund solvent, said the higher tax makes it harder for businesses to make a profit or hire more workers.
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Information from: The Providence Journal, http://www.providencejournal.com
