This is what happens when you blindly give out money without first accrediting who should receive it. Those PPP loans were very fraudulently handled as well. Our government's deep pockets, apparently, didn't think twice about who, what or why money was handed out. I can tell you that in California our State borrowed just over 20 billion from the Federal government to pay out its unemployment claims during the pandemic. Of course, California has not repaid those monies to the Federal government as of yet and really has no intentions on doing so. You want to know why they have no intentions on doing so, most may not even know this, but it's because it will be paid back by every single business in our State through taxation.
Instead of the typical 0.6% Federal Unemployment Tax Act (FUTA) tax rate that is imposed on businesses for wages paid to employees, the Federal government increase that rate by 0.3% each year if your State does not pay back the loan after two years. It's called a credit reduction State. If a State takes loans from the Federal government to meet its unemployment liabilities and does not repay those loans then the business are impacted and must repay the loan through taxation. So a decision made by your State to borrow unemployment funds from the Federal government to give to workers who are no longer employed, even though a business has already paid in unemployment funds for its workers somehow comes back to the employer to pay off a debt that it already paid into for purposes of providing unemployment. Go figure right. So a business pays in State unemployment tax per employee and Federal unemployment tax and then has to pay back a debt for a loan that it had no say so in getting.
This very same thing happened some 10 years ago during the last recession. California, as well as other States, paid back millions for loans their State's borrowed from the Federal government. Keep in mind that an employer already pays money into unemployment for both its State and Federal government. So how badly is the mismangement of unemployment funds going to hurt businesses? Severely. The last time California borrowed money from the Federal government for unemployment it was just under 9 billion. That took several year to pay that back. At one point California was paying an additional 1.5% for its FUTA rate for its employees. With the countless businesses that folded due to the pandemic and many businesses downsizing, it will more than likely take about 10 years for the businesses to repay this State debt. If the rate goes up 0.3% each year California could be seeing an additional expense to businesses of upwards of 3% per employee. A hidden expense that most employees will know nothing about because it does not impact them.There are other States impacted in the same fashion but California borrowed the most of any State.
Just keep giving money away and let others pay for it!
COVERS allows u to tell someone they are sexually frustrated so long as ur hands are clean
To remove first post, remove entire topic.
This is what happens when you blindly give out money without first accrediting who should receive it. Those PPP loans were very fraudulently handled as well. Our government's deep pockets, apparently, didn't think twice about who, what or why money was handed out. I can tell you that in California our State borrowed just over 20 billion from the Federal government to pay out its unemployment claims during the pandemic. Of course, California has not repaid those monies to the Federal government as of yet and really has no intentions on doing so. You want to know why they have no intentions on doing so, most may not even know this, but it's because it will be paid back by every single business in our State through taxation.
Instead of the typical 0.6% Federal Unemployment Tax Act (FUTA) tax rate that is imposed on businesses for wages paid to employees, the Federal government increase that rate by 0.3% each year if your State does not pay back the loan after two years. It's called a credit reduction State. If a State takes loans from the Federal government to meet its unemployment liabilities and does not repay those loans then the business are impacted and must repay the loan through taxation. So a decision made by your State to borrow unemployment funds from the Federal government to give to workers who are no longer employed, even though a business has already paid in unemployment funds for its workers somehow comes back to the employer to pay off a debt that it already paid into for purposes of providing unemployment. Go figure right. So a business pays in State unemployment tax per employee and Federal unemployment tax and then has to pay back a debt for a loan that it had no say so in getting.
This very same thing happened some 10 years ago during the last recession. California, as well as other States, paid back millions for loans their State's borrowed from the Federal government. Keep in mind that an employer already pays money into unemployment for both its State and Federal government. So how badly is the mismangement of unemployment funds going to hurt businesses? Severely. The last time California borrowed money from the Federal government for unemployment it was just under 9 billion. That took several year to pay that back. At one point California was paying an additional 1.5% for its FUTA rate for its employees. With the countless businesses that folded due to the pandemic and many businesses downsizing, it will more than likely take about 10 years for the businesses to repay this State debt. If the rate goes up 0.3% each year California could be seeing an additional expense to businesses of upwards of 3% per employee. A hidden expense that most employees will know nothing about because it does not impact them.There are other States impacted in the same fashion but California borrowed the most of any State.
and who forced businesses to close which then required businesses to take the loans to pay employees to come back to work? Which states stayed open, how are they doing vs states that forced shut downs?
and who forced businesses to close which then required businesses to take the loans to pay employees to come back to work? Which states stayed open, how are they doing vs states that forced shut downs?
Well in California it was our governor, Newsom. French Laundry boy...The later part of your question is a good question. I don't have the numbers for that. As a business owner in California this is infuriating. Our business works with other businesses for payroll purposes and it is a complete joke that this has happened. It's just more added costs to businesses in this State that it is incurring as a result of government action. The infuriating part is that it is a tax that has already been paid in by employers. The required Federal and State unemployment but for some reason the businesses have to pay more because the State obviously overpaid and mismanaged the funds. Completely ridiculous!
COVERS allows u to tell someone they are sexually frustrated so long as ur hands are clean
Well in California it was our governor, Newsom. French Laundry boy...The later part of your question is a good question. I don't have the numbers for that. As a business owner in California this is infuriating. Our business works with other businesses for payroll purposes and it is a complete joke that this has happened. It's just more added costs to businesses in this State that it is incurring as a result of government action. The infuriating part is that it is a tax that has already been paid in by employers. The required Federal and State unemployment but for some reason the businesses have to pay more because the State obviously overpaid and mismanaged the funds. Completely ridiculous!
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