Watch how many Employers leave Maryland (or reduce staff)?

12/30/2009 | conservativesister

[conservativesister]

Received my notice on MD Unemployment Insurance 2010 rate increases, what would you do?

If you have 4 employees at $10/hr 40/hr/wk.=$20800, wages for the 1st quarter 2010. My current unemployment rate now would cost me $187.

With the NEW rate increases (they have not given us what our individual rates will be yet, just a range of increases) my cost will be between $457-$2800.(for the 1st quarter)

Do I lay off someone, move, or go out of business? This is just the first increase notice, what about suppliers, other tax rates, etc. My margins don't allow for this amount of increase! (+250% to +1500%)

[kalee]

My husband’s office has just minimal staff in MD, most are now in CO.

[Uncle Miltie]

Flee.

[blackie]

Refuse to comply with these fascists!

[Quick Shot]

Don’t move to Florida. I have 14 employees, have not had a layoff in 8 years (and that was a polite firing) my rates are going up 28%. That’s the thank you for not laying anyone off. And this was Crist package....

[La Lydia]

When you lay those folks off, or move your business, be sure to give them a written statement explaining why the state government they no doubt voted into office is responsible for the “changes” in their employment status.

[Buckeye McFrog]

there are still people in Maryland who don’t work for the State or Federal Government?

[ClearCase_guy]

Unemployment is going up.

And just wait for that next Stimulus bill! It will make things even worse.

As intended.

[rhombus]

Do I lay off someone, move, or go out of business?

Give up on the private sector, comrade. Obama will care for you in the public sector and you won't have to work as hard... just submit. ;-)

[autumnraine]

Yeah, by the time the suppliers, landlord, and all other costs are passed down, the increase will be drastic for the consumer.

[poobear]

Mine just went to 5.4%. 21,000 qtr payroll tax to the State = $1,134. To the Federal Government another chunk at the end of the year.

Cheers!

Either go out of business or subcontract them if you can. But they'd have to become licensed, have a federal ID, get insurance and incorporate in order to be real subs. Not many are willing to absorb these costs just to make $10.00 per hour. Government hasn't a clue about small businesses. They think we are some kind of money bowl.

Look into Staffing Companies. I heard their rates have really gone down due to folks needing work.

[jwparkerjr]

As another poster points out you would be wise to avoid Florida. The average increase in rates statewide is 1100%. You read that right, eleven-hundred percent!

Part of the problem is that once someone begins to collect it lawmakers decide it should be an open-ended thing! Used to be you got 13 weeks, or whatever, and you were on your own.

I'm not too sure how long those with jobs can afford to help support those without jobs.

[max americana]

I am planning to inc. into NV for next year. Minimal/almost no corp tax structure to speak of, close to zero workers comp. One of our colleagues was planning to head to FL but found out due to a FR link I sent him about the tax increase and he was more shocked than what he was getting here in Mexifornia.

[Scotsman will be Free]

In a few years they’ll sit around and wonder where their tax base went. Just before they raise taxes on everything else.

[scooby321]

1099’s. No employees

[conservativesister]

I forgot to add the “reason” stated in their letter:

The reason is is straightforward: we have seen unprecedented demand on the Unemployment Trust Fund.

Doesn’t it make you want to say “HELLO STUPID”

[JackOfVA]

1099’s. No employees

Don't be surprised if the state challenges this, and sometimes the IRS as well, if there's enough money involved. There's a multi-step checklist used to determine if the people are involved are really independent contractors or if they are employees being treated as independent contractors in order to reduce taxes.

If the state and/or IRS decides they are employees, be prepared for an interesting (that is to say expensive) experience, especially if some have not paid their taxes, including both sides of FICA.

Jack

[Wissa]

1099’s. No employees Don't be surprised if the state challenges this, and sometimes the IRS as well, if there's enough money involved. There's a multi-step checklist used to determine if the people are involved are really independent contractors or if they are employees being treated as independent contractors in order to reduce taxes. If the state and/or IRS decides they are employees, be prepared for an interesting (that is to say expensive) experience, especially if some have not paid their taxes, including both sides of FICA.

Huh?!?

You mean there may be a catch to some of the free legal advice I get from anonymous freepers?

[napscoordinator]

$457-$2800.

The 457 you probably can handle, but 2800? I doubt seriously it will be that high....at least now.

[expatpat]

You might be worse off if you flee. MD has a relatively low unemployment rate (thanks to Uncle Sam), and other states may see even steeper rises in the tax.