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Small-business owners tell Senate committee COVID-era unemployment charges could spike tax rates
Summary
Salon owners and the Division of Workforce Services told the Senate Public Health, Welfare and Labor Committee that second-quarter unemployment-charge statements tied to pandemic layoffs have produced unexpectedly large account charges; the state is exploring legal and funding options, including whether CARES Act dollars or an executive order can prevent charges from increasing employer tax rates.
Senate Public Health, Welfare and Labor Committee members heard on Oct. 1 from Division of Workforce Services director Charice Childers and two small-business owners about large unemployment-insurance charge statements that reflect claims filed during the COVID-19 shutdown.
Childers told the committee the documents shown to members are quarterly statements, not final bills, and are used to calculate employers’ annual tax rates. “This is not a bill. These are court this is a quarterly statement. It shows the employer what charges are on their account and gives them the opportunity to look at those and have a period of time in which they can bring this…
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