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Texas Uneployment Taxes to Triple in 2010

Thur Feb 18 2010

You read that right, accountingweb.com has a good summary of what various states can expect. 

Paying people not to work is counter productive after a point. As employer taxes rise ever higher, it becomes a huge disincentive to hire more labor, as the employer pays that tax on every one of his employees. The longer individuals remain on unemployment, the more they expect it. The better idea would be for unemployment benefits to begin falling  after 90 days as a reminder this is NOT the person's new job. By the way, dropping minimum wage requirements would be a good idea if you wanted employer's to hire people. I am not being hard hearted, but Wash DC keeps calling for ever more unemployment which required ever higher unemployment taxes which guarantees employers will not hire another employee, it is as simple as that.

My previous post today suggested our graduates would face a tough job market, here is another reason why.

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2 responses to “Texas Uneployment Taxes to Triple in 2010”

  1. Tammy Salinas Avatar
    Tammy Salinas

    I agree. A perfect example would be the construction company my step-father-in-law works for. Companies are cutting corners anywhere and everywhere they can. He had been a regular W-2 employee for the past 35 years. Now, this company has changed to paying their employees straight. Straight money so that they don’t have to with hold and be responsible for their part. They pay him now in the form of a 1099-MISC. Which means, he is responsible for his own fed tax and does not pay into his ss and medicare. He, along with everyone else is considered their own self employer…hmmm..I wonder if others will follow suit to avoid all these taxes they pay for employees.

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  2. Dennis Elam Avatar
    Dennis Elam

    Tammy
    Actually there are rules about who is an independent contrctor, rules include
    whose tolls are they, the employee or the employer
    who decides the character of the work
    who decides the hours
    who provides any other factors like building or autos
    unless the contractor does all that, the IRS deems the person to be an employee

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