Increase in cost of unemployment insurance slams Colorado firms

Denver Post ^ | 12/03/2010 | Steve Raabe

[george76]

Premiums more than quadruple for some as the state fund has a shortfall.

Businesses are being hit with large premium increases to prop up Colorado's broke unemployment-insurance fund.

Record numbers of unemployment claims caused the fund to go broke this year, forcing Colorado to borrow, so far, $368.5 million from the U.S. government.

At least 40 other states also are borrowing from the federal government to cover their fund deficits.

Colorado's unemployment-benefit payments rose from $305 million in 2005 to $1.06 billion in 2009.

[driftdiver]

Its happening in every state.

[Attention Surplus Disorder]

I’ll never forget when I had a very simple equipment buy-sell business and I became “compelled”, let’s say, to “legitimatize” the business and get my single employee onto worker’s comp, pay unemployment insurance, and develop accounts for withholding taxes.

Before, I just wrote him a check for $1000.00 every Friday and it was more money than he’d ever made in his life. (This was 1991)

After, I think his check was about $671.

[poobear]

Yep, that $1,000.00 from your business quickly turned into around $1,600.00 a week right?! Try offering insurance and watch the vacuum!

[E. Pluribus Unum]

That's OK.

The more people receiving unemployment benefits, the better the economy.

We really don't need employers. Driving them out of business through exorbitant unemployment insurance costs is good business.

When all private employers are gone, we'll all be rich!!!

[Red Badger]

$1.06 billion in 2009? How many unemployed does Colorado have?............

[WOBBLY BOB]

Looks like CO needs a visit from the UI fairy.

[Attention Surplus Disorder]

No, it was more like about $1300, but still...I was just recalling the reduction from gross my employee suffered, but I forgot to consider the extra I had to kick in, as you imply. I didn’t much mind the 6% FICA, but the unemployment insurance & worker’s comp, for a worker who did zero physical work other than walking in the front door and pouring coffee (oh, that was the big hazard!) and cranking the FAX machine and pushing his chair in was jaw-dropping. If were to add in med insurance, then it would crank up to nearly $1600, I’m sure.

Employees are very expensive when you add in all your contributions as employer and any el-nonproducto periods of “training”, if needed. Obviously, and of course, many employees can be valuable moneymaking parts of your business, but they can also cause lots of problems and turn around and sue you for trivia.

In two later businesses I had which were very successful, I simply would not take on employees. I couldn’t see how it would be profitable. I just grew the thing until the point where I maxed out what I could handle on my own and capped it there.

[george76]

Over 200,000 plus the illegals and those who have stopped looking for a job / working part time / seasonal

[poobear]

I’m a Mechanical Contractor. The insurance (WC/Liability) can be quite cumbersome if you don’t shop around. The matching taxes and additional 5.4% State Uninsurance Fund kills you each quarter in my state. Right now I have no employees. If a large job comes up, I’ll let a Subcontractor deal with the payroll. It’s almost impossible, really!

[george76]

Employees will be much more expensive soon.

All that ** free ** Obama / Pelosi stuff that businesses will get hit with

[Nick Danger]

This just in... Colorado employers reluctantly terminated 87,922 workers this month due to an increased state levy for unemployment compensation. "If we pay the state, we can't afford to pay the people. We had to let them go," said Dagny Rearden of the Chamber of Commerce.

The 87,922 people promptly went on unemployment.

This just in... Colorado employers reluctantly terminated 93,412 workers due to an increased state levy for unemployment compensation.

The 93,412 people promptly went on unemployment.

This just in...

[Buckeye McFrog]

Pennsylvania had to do this back in the early 80’s when the steel industry collapsed. It took 15 years of increased taxes to pay the money back to the Feds.

[Opinionated Blowhard]

All we have here is a bunch of rich fat cat business who aren’t willing to pay their fair share. Remember: the longer unemployment benes are extended, the more jobs that are created!!!!

[AlaskaErik]

This is nothing compared to the public employee retirement fund crisis that is going to slam CO in the next decade or so. It’s going to get real ugly.

[CherylBower]

We build and race cars. No insurance company will touch us for WC. We have had very, very few claims. And NO unemployment claims, ever. Our UI rate quintupled (5x). ticks me off ... grrrrr

[A.A. Cunningham]

Mares is simply improvising since he has to finance paying the illegals unemployment benefits somehow.

Colorado Gives Illegal Immigrants Unemployment Benefits

[poobear]

I found a great company that will let you do the labor costs plus their % add on with a little as 500 work hours per month. They are happy to insure you as long as you don’t have claims. It works out to pennies on the dollar. You still get those preverbial Certificates of Insurance too!