Want to reduce your payroll taxes?

One way you can keep payroll taxes down is by being clear about how state unemployment insurance works. This is the tax that helps when employees are laid off and can’t find another job, so they collect unemployment benefits. But sometimes workers quit or are fired due to bad performance or misconduct. What many small business owners aren’t aware of is that they will be paying higher state unemployment taxes, until that persons claim is paid off, IF the employee is laid off. Basically, employers have to pay back the state for whatever the employee collects in unemployment benefits.

If an employee asks you to say you are laying them off so they can collect unemployment (when in fact they are quitting, or being fired) be clear that you are not. And when the state sends you the form requesting information about the ex-employee, fill it out and return it. As that is your opportunity to make it clear to the state that it wasn’t a layoff.  For more information go to oregon.gov .

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