In a unanimous vote, the Massachusetts House and Senate overwhemingly gave final approval to legislation to avoid a 60% unemployment insurance tax increase on employers. The legislation also prevents forgiven PPP loans from facing state taxes. The National Federation of Independent Business (NFIB), a small business advocacy association with thousands of members in the state, reacted to that vote.
“Small businesses can breathe a sigh of relief that they will no longer face a sixty percent increase in unemployment insurance taxes and can begin focusing on job growth and Massachusetts’ economic recovery,” said NFIB’s Sr. State Director, Christopher Carlozzi “The rate freeze is a good first step to address the state’s larger unemployment insurance crisis, however, it is strongly encouraged that the Commonwealth utilize federal American Rescue Plan Act dollars to help further replenish the trust fund.”
“Employers are also pleased to confirm their Paycheck Protection Program loans, meant to keep their businesses running and workers employed during the height of the pandemic, will not be taxed by the state. Businesses that were forced to close their doors and restrict their operations can ensure that every cent of the PPP loans be used for their intended purposes to meet payroll, pay utilities, and cover rent. These are two crucial policies that will directly assist struggling small businesses who were ravaged by the pandemic and now hope to lead the state’s economic recovery.”