Legislators permit raise in jobless tax

A deadline to stop the increase passed while the House tried to tie the levy to a minimum wage hike

By Derrick DePledge

POSTED: 01:30 a.m. HST, Mar 14, 2013

~~<p>State lawmakers will not prevent an increase in the unemployment insurance tax, a choice that will cost businesses $66 million for the next year but could strengthen the unemployment reserve.</p>
<p>The state Department of Labor and Industrial Relations had told lawmakers they needed to take action by March 8 to avoid the automatic rate increase. While the state Senate approved a bill last week that would have averted the increase, the House proposed changing the law so that businesses could make first-quarter unemployment insurance payments in May, relieving the need to act by early March.</p>
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State lawmakers will not prevent an increase in the unemployment insurance tax, a choice that will cost businesses $66 million for the next year but could strengthen the unemployment reserve.

The state Department of Labor and Industrial Relations had told lawmakers they needed to take action by March 8 to avoid the automatic rate increase. While the state Senate approved a bill last week that would have averted the increase, the House proposed changing the law so that businesses could make first-quarter unemployment insurance payments in May, relieving the need to act by early March. Login for more...