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Show Federal Aid Plan Supported by Utah Employers Utah employers will have to pay twice as much in added taxes tax-es to finance the new Federal temporary extended unemployment unemploy-ment con nsation program as workers i 'ie state will receive back in i tional benefits. This faci was highlighted in an analysis of unemployment taxes and benefits by Utah Foundation, Foun-dation, the private, nonprofit tax research organization. The Foundation report notes that Utah will be one of 41 states where the tax payments will be in excess of the benefits received receiv-ed under the program. Nine states (New York, New Jersey, Pennsylvania, Ohio, Michigan. Alaska, Oregon, Kentucky, and West Virginia), on the other hand, are expected to be subsidized subsi-dized by the program. The study stu-dy observes that three of the subsidized states rang among the top ten and four among the second sec-ond ten states in per capita in come. In order to finance the new Federal program, an added temporary tem-porary Federal payroll tax of 0.4'5 will be imposed on all employers em-ployers of four or more persons. The added tax applies to 1962 and 1963 payrolls and will become be-come payable in January 1963 and January, 1964. Utah Foundation Founda-tion analysits point out that this additional Federal tax, which will amount to approximately $12 per employee, will produce about $1.1 million in added revenue during the two year period in Utah. Additional benefits to unemployed un-employed workers in Utah under the extended Federal program are expected to total about $2.0 million during the life of the temporary pi"grani. The extendea vrmployment benefit program goes into effect this week (week beginning April 10). It provides for extended unemployment un-employment benefit coverage up to a maximum of 39 weVks under un-der both the State and Federal programs. Utah's present state program provides for a maximum of 36 weeks of benefit coverage. The added coverage under the new Federal law applies to workers work-ers who exhausted their state benefit right after June 30, 1960, and the scheduled to terminate June 30, 1962. Despite recent increases in Federal and state unemployment tax rates, employers fare better in Utah than in most of the other oth-er states, according to the study. stu-dy. The average state unemployment unemploy-ment tax rate during 1960 was l!5'5 of covered payroll in Utah, compared with an average of 1.9',c in the national as a whole. This generally lower state unemployment un-employment tax rate in Utah is attributed by the Foundation to relatively better employment conditions in the state during recent re-cent years. Unemployment benefits bene-fits as a percentage of covered payrolls averaged lAr,'r in Utah and 201 in the U. S. over the past five years. Utah also has been able to maintain a more adequate roerve to meet future coniingeneirs than most of the other states. At the close of the 1960 calendar year, the Utah reserve re-serve fund was equal to 7.5'; ol the covered payroll compared with 5.6 for the nation. |