MONTGOMERY, Ala. (AP) — Alabama employers are facing a one-time assessment of $5.60 for a typical employee to help pay interest on money the state borrowed to cover unemployment benefits.
|State Industrial Relations Director Tom Surtees said Monday his department will send letters to employers about the 0.07 percent assessment of the employer's 2010 taxable wages. The assessment applies to the first $8,000 of an employee's wages, or $5.60 for a typical employee. The assessment due Sept. 9 will repay interest due to the U.S. Treasury for money that the state borrowed to replenish an unemployment fund stressed by Alabama's 9.9 percent jobless rate.
|Surtees said state law requires employers to pay the interest, and paying the interest will keep employers from losing a federal tax credit worth about $21 per employee.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
