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Show .jm'ploynient Benefits, Taxes 'increase With New Year I legislation cn-Conpvesa cn-Conpvesa this 'j, rfuire m:iji.r ' in 5tate imomploy. :' . .pensftio.. pro-; pro-; ,(cordin to a at. -; "; ;mPlcte,l by Utah -. 'on. t,ie l,nva' 01ir:ui"ation. . uinilti"n report r th:,t the new i'ijw requires that ': ' erace be e .tended tofpitnls and col-' col-' sl firms, nonpro-'.'nat'ons, nonpro-'.'nat'ons, and oth-(2) oth-(2) a new pro-i pro-i established which .;ofide extended un. ' Jlfnt benefits in ; ,';of high unemployed unemploy-ed (3) Federal un-. un-. U.ent taxes to be in- :i ' In addition to th0 char f,os, ri''l"ired by the new K'deral legislation, the Foundation reports tlvr the advisory council to the t 'ah Department of Employment Em-ployment Security has rec ommended SOme further changes in the law The principal change proposed propos-ed by the advisory council is an increase in the maximum maxi-mum weekly benefit to un employed workers from 50 per cent to Go per cent of the statewide average wa-e of covered workers, In effect, the suggested change would raise the maximum unemployment benefit from ?5G to $73 per week. Foundation analysts point out that while the recommended higher maximum maxi-mum benefit is not specifically speci-fically required by the new Federal law, the President Pre-sident has warned that the Federal government might act if the states fail to raise the maximum benefit bene-fit within the next two years. The recommended change would raise the maximum benefit for higher high-er paid workers who usually usual-ly are heads of . families. Studies by the Utah advisory advis-ory Council indicate that approximately 41 per cent of the male claimants and only 2 per cent of the female fe-male claimants would be entitled to the proposed higher maximum benefit! amount. The Foundation study reveals that Federal unem. ployment taxes were increased in-creased this year from $12 to $15 for each employee earning $3,000 or more. After Af-ter 1972, the Federal unemployment un-employment tax will amount am-ount to $21, or $9 above present levels, for each employee em-ployee earning $4,2C0 or more In addition, small employers heretofore . exempt ex-empt will be required to pay this Federal tax beginning begin-ning in 1972. The Federal unemployment unemploy-ment tax has been used mainly to finance admin, is'tration of the employed employ-ed security program at the Federal and state levels. lev-els. This Federal tax is in aocuuen to the state unemployment un-employment tax used to pay unemployment benefits bene-fits to claimants. Because o Utah's reserve re-serve fund and the operation opera-tion of; the state's unemployment unem-ployment law, there will be no immediate increase in state unemployment taxes to pay for the enlarged benefits. Over the Ion run, however, it is estimated esti-mated that the recommended recommen-ded changes would cost the average employer an added add-ed $10 per employee in state unemployment taxes for the suggested new pro-yramj pro-yramj This amount, of course, is in addition to the scheduled increases in Federal unemployment taxes. Since the new law extends ex-tends unemployment benefit bene-fit coverage to state institutions in-stitutions of higher education educa-tion and hospitals begin-.; ning in 1972, the report notes thai there will be some added government costs involved in that aspect as-pect of the new program. |