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Show Bi-Weekly Paying Employers Warned to Adjust Payrolls With Employment Security Utah employers who pay their employees every two weeks or who make substantial annual bonus or lump-sum payments to their employees may have to pay a higher unemployment compensation compen-sation tax rate next year, unless they take immediate steps to adjust their payroll data with the Department of Employment Security. This warning was issued this week by Utah Foundation, the private, non-profit tax research organization. According to the Foundation, the new Employment Security Act. passed by the 1955 Utah Legislature, gives greater weight to quarterly employment stability. stabil-ity. In addition, the revised employer em-ployer experience rating formula in the new law is made more sensitive to such changes. "Employers who pay on a bi- weekly basis or who make annual an-nual lump-sum payments will thereby show fluctuations in their quarterly payroll data even though stable labor conditions may exist in their firms," the Foundation report continues. "This arises because the number of payroll payment dates will vary between quarters if payment pay-ment is made at two-week intervals in-tervals or if bonus payment is made in one quarter and not In others." Utah Foundation analysts ana-lysts point out that these "ac-counting "ac-counting period fluctuations" could cause an employer to pay an additional tax of .2r,'o ($2 for every $1,000 of covered payroll) or even more next year. In order to correct this In- equity, employers, with bi-weekly payrolls or substantial annual an-nual bonus or lump-sum payments pay-ments should iequest that such wages and payments be apportioned appor-tioned to the calendar quarter in which such remuneration was actually earned. However, the report re-port warns that the effected employers em-ployers must take the initiative in requesting that such apportionments appor-tionments be made by the Department De-partment of Employment Security. |
