It’s a great feeling to share some good news for employers! The entrepreneurs who supply jobs to the community display courage and leadership every day and now they are set to get some small business love.
Indiana Gov. Mike Pence announced that the state will pay off an outstanding federal unemployment loan, which will save the state’s businesses from paying the penalties being accrued. And that is a big relief – to the tune of (according to the Indy Star) $327 million!
We previously explained in another blog post how the Federal Unemployment Tax Act (FUTA) rate is determined. Part of it depends on whether financially-strapped states have borrowed from the federal government AND if they repaid the loans. The rates required go up each year it’s not repaid and then there are the penalties…. Indiana DID borrow and Indiana has NOT paid the debt off – until now. The payment has to actually be paid by Nov. 10 so hold your breath small business owners … time will tell if you will have some extra money in the coffers this coming year.
Besides extra money, employers will need to make changes to their payroll. The rate will need to be adjusted so that employees and employers pay the proper amount and it is appropriately reported and paid. That’s where outsourcing to a payroll provider like The Payroll Department makes a big difference. You just hand over the task to us and we take care of it all.
We know it’s tough to stay on top of all the changes in payroll and small business taxes, even when it’s good news like this event, that’s why The Payroll Department was established – and why we continue to be a source of relief for already overburdened small business owners.
The cost to outsource is significantly less than the potential cost of errors, missed deadlines and other payroll problems with the state and the IRS. Make it easy and sleep better at night. Call on the experts at The Payroll Department to make sure your payroll runs as smoothly as your workplace.
-Elaine of The Payroll Department Blog Team