Higher unemployment taxes are a concern of every employer. Depending on the number of claims, and several other factors, rates could be on the way up for many companies across the country.

However, that isn't exactly the case in North Carolina. In fact, relief is on the horizon in the form of a tax reduction, thanks to the state's early payment of its debt to the U.S. Labor and Treasury departments. This news was recently announced by North Carolina's Division of Employment Security, which noted that this outstanding balance is expected to paid off by August 2015, instead of the previously expected November 2015.

That debt currently sits at more than $971 million, while its highest point was $2.8 billion. This rapid improvement has been attributed to recent legislation changes to the state's unemployment insurance system. If it is completely paid off by early November 2015 at the latest, employers could see their taxes decrease starting in 2016. If the deadline isn't met, the tax rate would actually increase.

"The quicker this debt is paid off, the quicker we can lower the taxes and level the playing field for North Carolina employers," Dale Folwell, assistant secretary of Employment Security, said in a statement.

NC's unemployment benefits climb
While the recent efforts in North Carolina to cut back on unemployment benefits have been largely successful, recent data from the state's Department of Commerce Division of Employment Security reported that figures ticked up in June.

Benefits reached nearly $38 million for the month, 3.9 percent higher than May's totals. However, that is a 79.9 percent drop from the same time one year ago, illustrating the effectiveness of North Carolina's cost-cutting measures. In addition, the number of weeks on average that claimants received benefits increased slightly from the fourth quarter of 2013 to the first quarter of 2014 – up from 17.4 to 17.8. 

The DES noted that more than $10.3 million in unemployment taxes were collected from employers in June. There were also more than 24,000 initial claims that month, up 3.9 percent from May's figure.

Overall, these trends in North Carolina are positive for the state's employers. As the debt gets paid off, there is a good chance that unemployment taxes will decrease over the next several years.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment insurance expenses.

Contact CCC to see how we can save your organization time and money. Contact our Sales Team (800) 207-6926

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