|
What's new at Southwest Staffing
Southwest Staffing has created this page to bring you current and important information. Please take the time to read all the information on this page, and as always please feel free to share you comments and views with us. So what's new at Southwest Staffing.....
Future Unemployment Tax Cost Issues
- US Department of Labor: In the mid-term Office of Management and Budget (OMB) review of economic assumptions for the federal budget issued in December, 2009 the following finding was made:
- Very large amounts of borrowing from the Federal Unemployment Account (FUA) are projected over the next few years. The balance of outstanding loans is expected to increase from the current $14 billion to a peak end-of-year balance of $90 billion in FY 2012.
- The peak estimate has been recently revised to $65 billion
- Government accountability office (GAO) in testimony before the Subcommittee on Income Security and Family Support, Committee on Ways and Means, House of Representatives (May 6, 2010):
- “… state UI trust funds are in historically poor financial condition. As of April 1, 2010, 34 of the 53 state trust funds have outstanding loans totaling $38.9 billion…
- “Our report included a matter of Congressional consideration regarding the possibility of raising the FUTA taxable wages base from its current level of $7,000 and indexing this base to average annual wages.”
- California Employment Development Department (CA EDD): In its May, 2010 Unemployment (UI) Fund Forecast, CA EDD projected:
- “… The UI Fund is projected to have a deficit of $15.3 billion at the end of 2010 and a deficit of $20.9 billion at the end of 2011 if changes are not made to the financial structure.
- Congressional Budget Office (CBO): The unemployment tax burden is expected to increase from $38 billion in FY 2009 to $75 billion by 2013 and remain in the $78-$84 billion range through 2020.
- Current Federal Law: When a state UI trust fund has become insolvent and has incurred federal Title XII loans to continue paying UI benefits, and when such loans have remained unpaid on January 1st for two consecutive years:
- A reduction in the FUTA tax credit will occur in the amount of 0.3% for each year this condition exists.
- A 0.3% reduction in credit is, in reality, an increase in FUTA for employment in that state.
- The accompanying chart indicates which states are/will be affected by this law.
|
Potential FUTA Credit Reduction |
|
|
|
|
|
|
|
|
|
|
|
State |
Loan Balance |
Actual |
Potential FUTA Effective Tax Rate |
|
September 2, 2010 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Michigan |
$3,814,145,999 |
1.10% |
1.40% |
1.70% |
2.00% |
2.30% |
2.60% |
|
|
Indiana |
$1,766,755,654 |
|
1.10% |
1.40% |
1.70% |
2.00% |
2.30% |
|
|
South Carolina |
$886,662,352 |
|
1.10% |
1.40% |
1.70% |
2.00% |
2.30% |
|
|
Alabama |
$283,001,164 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Arkansas |
$330,853,383 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
California |
$7,852,235,707 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Connecticut |
$498,452,705 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Florida |
$1,612,500,000 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Georgia |
$416,000,000 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Idaho |
$202,401,700 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Illinois |
$2,238,582,343 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Kentucky |
$795,100,000 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Minnesota |
$480,422,645 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Missouri |
$722,116,933 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Nevada |
$489,503,054 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
New Jersey |
$1,749,563,533 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
New York |
$3,176,873,428 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
North Carolina |
$2,360,247,613 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Ohio |
$2,314,186,799 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Pennsylvania |
$3,008,614,960 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Rhode Island |
$225,472,937 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Texas |
$1,378,439,823 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Virgin Islands |
$15,828,449 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Virginia |
$346,876,000 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Wisconsin |
$1,424,768,541 |
|
|
1.10% |
1.40% |
1.70% |
2.00% |
|
|
Arizona |
$70,427,766 |
|
|
1.10% |
1.10% |
1.70% |
2.00% |
|
|
Colorado |
$253,171,185 |
|
|
1.10% |
1.10% |
1.40% |
1.70% |
|
|
Delaware |
$12,901,505 |
|
|
1.10% |
1.10% |
1.40% |
1.70% |
|
|
Kansas |
$88,159,421 |
|
|
1.10% |
1.10% |
1.40% |
1.70% |
|
|
Maryland |
$133,840,764 |
|
|
1.10% |
1.10% |
1.40% |
1.70% |
|
|
Massachusetts |
$387,313,005 |
|
|
1.10% |
1.10% |
1.40% |
1.70% |
|
|
Vermont |
$32,657,064 |
|
|
1.10% |
1.10% |
1.40% |
1.70% |
|
 
El Paso businesse joins ICE program that helps employers hire legal workforce
El Paso Texas - Southwest Staffing inc. a temporary employment agency located in El Paso, Texas Friday joined a U.S. Immigration and Customs Enforcement (ICE) program to ensure the employees they hire are legally authorized to work in the United States.
Southwest Staffing inc. established a formal partnership with ICE's Mutual Agreement between Government and Employers or more commonly called "IMAGE."
Southwest Staffing inc. qualified for IMAGE certification by training their staffs to comply with the program's standards, and to use screening tools offered by the federal government to prevent them from hiring unauthorized workers.
"Through this partnership with ICE, Southwest Staffing inc. is ensuring the integrity of its staff, as well as promoting national security," said Manual Oyola-Torres, special agent in charge of the ICE Office of Investigation in El Paso. "We welcome other employers to join IMAGE to help reduce vulnerabilities that illegal aliens use to secure jobs."
A known vulnerability is the presence of undocumented workers who gain employment by fraudulent means, including presentation of false documents, completion of fraudulent benefit applications and theft of identities.
IMAGE, which was initiated in 2007, assists employers develop a more secure and stable work force as well as enhance awareness about fraudulent document through education and training. By voluntarily participating in the program, employers can reduce unauthorized employment and the use of fraudulent identity documents. ICE IMAGE coordinators train employers on proper hiring procedures, fraudulent document detection, and use of the E-Verify employment eligibility verification program.
E-Verify is administered by U.S. Citizenship and Immigration Services. Through this program, employers can verify that newly hired employees are eligible to work in the United States. This Internet-based system is available in all 50 states and is free to employers. It provides an automated link to the Social Security Administration database and DHS immigration records.
"Southwest Staffing is proud to be a part of the ICE IMAGE program. The staffing industry is a very competitive industry and using the E-Verify process offers added security to our clients, as wells as provides us a competitive edge in our industry," said Sharon Olivarez, president of Southwest Staffing Inc.
Local employers may contact the IMAGE coordinator at (915) 231-3200 for more information.
-- ICE --
"U.S. Immigration and Customs Enforcement Website"
|
