Human Cost
Dodging unemployment taxes is a risky business.
Don't be tempted to avoid paying state unemployment taxes: A year-old federal law gives state officials the right to seek unpaid taxes and impose penalties on companies that avoid unemployment taxes, a maneuver that's been dubbed "SUTA (state unemployment tax acts) dumping." These taxes are used to finance state trust funds that pay benefits to workers who lose their jobs.
The law eliminated some of the most flagrant SUTA-dumping techniques, such as creating a shell corporation to wipe out a company's high unemployment experience rating. Current law says a company's unemployment experience rating, which is based on the number of unemployed workers the company has created in the past, must be transferred when employees move from one business to another owned or controlled by the same employer.
Continue reading this article - and everything on Entrepreneur!
We make some of our best content available to Entrepreneur subscribers only. Become a subscriber for just $5 to get an ad-free experience, exclusive access to premium content like this, and unlock special discounts.
Entrepreneur Editors' Picks
-
Kale Was a Garnish Before This Creative Genius Made It Famous. Here's How She Did It — and What She's Planning Next.
-
Telling Your Brand Story Is Crucial. 4 Steps to Ensure That It Resonates.
-
This Baker Was Told Not to Speak Spanish With Colleagues, So She Started Her Own Cake Company That Values Employees Just as Much as Customers
-
Improving Yourself Takes 9.6 Minutes of Work Each Day
-
Meet the Women Behind Some of McDonald's Most Iconic (and Essential) Ingredients — and How They're Setting New Standards
-
Remote Work Shouldn't Be Up for Debate
-
Employees Are Over Foosball Tables and Free Snacks. Your Company Culture Needs This Instead.
