The Ohio General Assembly is committed to addressing the solvency of Ohio’s unemployment compensation system. To that end, the Unemployment Compensation Reform Joint Committee was formed and has been meeting over the past month to solicit feedback on how best to bring long-term balance to the unemployment compensation system. The Committee is comprised of members of both chambers and both parties. The Committee is holding three more meetings before it will be dissolved: October 6, October 20 and November 3.
While NFIB/Ohio is grateful for the General Assembly passing and Governor Kasich signing into law repayment of the outstanding federal unemployment debt, absent meaningful, systemic reforms, Ohio is likely to return to a state of borrowing during a more severe economic downturn.
As you know, employers are subjected to two unemployment taxes: the federal unemployment tax (FUTA) which is a flat, per-employee tax, and the state unemployment tax (SUTA) which is an experienced-based tax. The last recession caused Ohio to have to borrow from the federal government to meet legitimate unemployment claims. The protracted borrowing resulted in increased FUTA taxes costing employers over $1 billion in additional taxes and penalties. While other states enacted solvency measures to adjust their unemployment compensation systems, Ohio has yet to do so. We must address this issue before the General Assembly adjourns at the end of December.
As small-business owners and the financiers of the unemployment compensation system, your feedback is critical. NFIB/Ohio is asking each of our members to take the time to urge the members of the Committee to enact solvency legislation that will ensure the long-term stability and predictability of Ohio’s unemployment compensation system. The solution must not be solely borne by employers and in fact must look at where Ohio’s benefits are aligned with our neighboring states and the nation as a whole.
Please take the time to pen a short letter, on your company stationery, explaining the impact of increased, unstable unemployment taxes on your business and the need to fix the system. The Committee must hear from small-business owners to craft a proposal that recognizes your important role in Ohio’s economic vibrancy.
Please send your electronic letter to NFIB/Ohio Legislative Director Chris Ferruso at [email protected]
The salutation on your letter should be addressed as follows:
Feel free to reach out the Chris Ferruso directly with any questions. Thank you for taking the time to make an impact on this most important public policy issue and thank you for your membership with NFIB!
