Mount Vernon News
 
 

By Mount Vernon News
January 30, 2012 11:03 am EST

 

MOUNT VERNON —When the economy fell into a deep recession, thousands and thousands of workers lost their jobs. When the states’ unemploymenet compensation coffers ran dry, some states, Ohio included, had to borrow money from the federal government to make those extended payments. Now, the loan is coming due, and business owners have been zapped with an increase in their federal unemployment taxes.

Janice Stone, bookkeeper for S/R Marketing in Mount Vernon, said employers did not know they would be charged the extra money until after Christmas, and the payments are due by Tuesday.

“It’s not all that much extra money,” she said, “but I think a lot of people don’t understand how this all impacts the little, independent businessman. Our payroll last year was barely over $200,000 and the taxes that the employees paid and the taxes the business paid were 31 percent. We paid $299.50 in federal unemployment taxes in 2011 and now had to pay an additional $113.55. Remember, we also have to pay state unemployment taxes, which vary according to the number of clams you have. ... Another hit to business is that employers have to pay a higher percentage for Social Security taxes. ... I know everything has to be paid for somehow, but I just don’t think making businesses pay for everything is the answer. There’s more to business (in this country) than giant corporations that can afford these hits. The true backbone of our country is not the big Fortune 500 corporations, it’s the little independent businessman.”

For the full story, click here for the January 30, 2012 e-edition. The article will only be available for thirty (30) days.

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