TALX recently held a webcast regarding the impact of the current recession on federal and state unemployment taxes and what employers should expect in 2009 and future years. TALX provided a national economic update on state unemployment trust fund solvency, individual state unemployment rates and impacts on 2009/2010 FUTA taxes. The implications of the American Recovery and Reinvestment Act of 2009 as well as insight regarding budgeting considerations for FUTA and SUI were discussed as well.

The upshot of this discussion is that currently 14 states have requested Title XII loans from the federal government. If they are not repaid within established time frames, those states will lose their FUTA credit, thus increasing employers’ federal taxes. Virtually all states have seen dramatic drops in their trust fund balances which will cause state unemployment rates to increase. Couple this with individual employer claim and benefit charge activity, many employers could be facing significantly higher unemployment tax rates in 2010 and beyond.

TALX has traditionally performed tax rate projections for interested employers. However, an even more robust forecasting tool has been created that will provide an employer with more information with which to make informed decisions regarding unemployment taxes. For more information on the enhanced forecasting tools, please contact Pete Kreishok at 314.214.7325 or via email at pkrieshok@talx.com