Unemployment taxes on businesses are slated to rise in Louisiana, while state benefits to unemployed workers will go down next year. That’s because an increase in the ranks of Louisiana’s unemployed has drained money from a trust fund that pays benefits from taxes on businesses. A state law requires the increase in taxes and decrease in benefits when the trust fund drops below a certain balance.
The Revenue Estimating Conference agreed to projections today from the state labor department that show a drop in the fund balance, triggering the changes. The adjustment means in 2010 employers will pay taxes on the first $7,700 in earnings per employee, rather than the first $7,000. Maximum benefits to those who apply for unemployment after Jan. 1 will drop from $284 per week to $247.
