SMALL BUSINESS GETS WELL DESERVED UNEMPLOYMENT INSURANCE TAX RELIEF

Date: March 25, 2016

SMALL BUSINESS GETS WELL DESERVED UNEMPLOYMENT INSURANCE TAX RELIEF

 MINNEAPOLIS
(March 25, 2016): According to the National Federation of Independent Business
(NFIB), small employers got a well-deserved unemployment insurance tax credit
yesterday when the house and senate finally worked out an agreement to provide
employers $258 million in tax relief. The tax credit legislation was strongly
supported by NFIB.

“With the
unemployment insurance trust fund running a historic high surplus, a
significant tax credit was certainly justified,” said NFIB Minnesota state
director, Mike Hickey. “The one-time $258 million tax relief package will
reduce the taxes on a single business by approximately 25% compared to what
they paid in 2015. This will be extremely  helpful to small businesses and
if past practice is any indication, most business owners will reinvest this
money into their business by improving their existing locations or even
expanding.”

Hickey also
noted that employers fund 100% of the unemployment insurance trust fund system
and there is also a provision in the bill to automatically provide tax credits
back to employers when the surplus reaches a high level. With the surplus
expected to rise to $1.8 billion later this spring, yesterday’s tax relief was
very timely. Governor Dayton wasted no time and signed the legislation into law
 last night.

“It was
good to see the legislature reach a bipartisan agreement on this issue.
Hopefully this will create a natural segway to compromising on our stalemated
tax bill that is stuck in conference committee,” concluded Hickey.

Related Content: Small Business News | Minnesota | Taxes

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