Business owners save hundreds in unemployment insurance taxes
LEXINGTON, Ky. (WTVQ) – Kentucky businesses are likely going to save hundreds of dollars thanks to a tax freeze.
State lawmakers passed House Bill 413 to allow the tax schedule for unemployment insurance stay frozen at the rate it was at before the pandemic.
Kate Shanks with the Kentucky Chamber of Commerce says it was imperative to get the freeze through the general assembly.
“Our unemployment insurance trust fund became so depleted during the pandemic due to record unemployment, that it triggered us from going really, from what is probably the least cost tax schedule, to the highest cost tax schedule for employers,” she said.
Without this freeze employers would have seen spikes of about $100 per employee she says.
“It really takes some of the weight off the shoulders of employers so that they can then hire more workers, potentially expand their business and really recover from what has been an economic crisis unlike anything we have ever seen,” Shanks said.
Great Bagel owner and chef Robert Swan says of course, any tax break is necessary.
“2020 was hard, it was hard, we’re not doing anywhere near the sales we were,” he said. “It’s a struggle, it’s a struggle to stay afloat, you know you’re doing everything you can to kinda hustle and make it.”
And for swan, he says hiring more workers has turned out easier said than done.
“We can’t find people that want to work and that’s our biggest challenge right now,” Swan said.
Shanks says he’s not alone, the restaurant industry across the state has more than 95,000 openings.
If you’re an employer, your new tax rate will be mailed to you if it hasn’t already.
Click here for more from the Kentucky Chamber of Commerce.