The State of Missouri just handed over a lush 2% pay increase to state employees while milking employers for additional unemployment debt!
The June 2012 Missouri Employer News Quarterly (see below) announced a rather unpleasant surprise for those of us who provide jobs! (Quote:)
"Missouri's Unemployment Insurance (UI) Trust Fund became insolvent February 2009. Since then, Missouri has borrowed from the federal government to pay unemployment benefits and currently has an outstanding loan balance of $563 million. Missouri will be required to make an annual interest payment by September 30, 2012. The federal government assesses interest based on the average daily loan balance.
To put Missouri in the best possible position to meet loan obligations, the Division of Employment Security (DES) proactively made a $221 million principal payment on the outstanding loan balance, which will reduce the September 201210an interest amount by approximately $2.45 million.
Because federal law does not allow the unemployment taxes collected from employers to go towards paying the loan interest, Missouri assesses an additional amount to employers that is collected once a year until the loan balance is satisfied. This practice is similar to the practices of other states that have borrowed from the U.S. Treasury.
The DES notifies each employer of its share of the assessment with the mailing of the 2012 second quarter Contribution and Wage Reports. The assessment amount for each employer will be shown on Line 8, Interest Assessment Due to Federal Advances, and is due by July 31, 2012. Additional interest will accrue if the assessment is paid after the due date." (End Quote)
So in essence The State of Missouri is BROKE and has been borrowing money from the Federal Government to pay for extended unemployment benefits for people who don't or won't work! Now that they don't have the revenue to pay the debt they are going ta assess each employer a fee!
So while the owner of this company has gone 14 months without a paycheck so that we may keep the two remaining employees we have, the State of Missouri is increasing pay and benefits for state employees and dumping the burden on our backs!
Who is John Galt?