All Articles Tagged "pink slip taxes"
Feeling Blue About Pink-Slip Taxes
(WSJ.com) – With pink-slip taxes increasing, more small-business owners may be motivated to appeal claims for unemployment benefits filed by former employees who quit or were fired for cause—but such appeals can sometimes backfire.
U.S. employers are required to make regular tax contributions toward unemployment insurance. They’re taxed at a rate that varies by state and the size of their payroll. That rate can increase as a business lays off more employees.
Pink Slip Taxes: Business Owners Pay for Layoffs
(WSJ.com) — At Amazon Reptile Center Inc., owner Scott Solar is paying for the pink slips he issued.
After several years of growth, the company, which has two reptile pet stores in Montclair and Covina, Calif., ran headfirst into the recession. As employees left, they weren’t replaced, but recently the company decided to let go of three workers. In three years, the staff shrunk to five from 12. Now, like many owners, Mr. Solar will be paying a higher state unemployment insurance tax as a direct result of those layoffs.
