Tracking unemployment insurance.Howard Fine's July 4 article, "Officials Targeting Companies in Unemployment Tax Fraud," brought to light the commendable com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. efforts of California and other states to close a loophole An omission or Ambiguity in a legal document that allows the intent of the document to be evaded. Loopholes come into being through the passage of statutes, the enactment of regulations, the drafting of contracts or the decisions of courts. in the unemployment insurance system and to fight fraud. The National Association of Professional Employer Organizations A professional employer organization (PEO) provides outsourcing of payroll, workers' compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, thus becoming their employer of record. has backed efforts to prevent a practice called "SUTA dumping SUTA Dumping is a name commonly used to describe a practice used by some companies doing business in the United States to circumvent paying unemployment insurance taxes, as mandated by the Unemployment Tax Act of 1939. ," which in the past was used by employers of all sizes and in virtually every industry. (SUTA, or State Unemployment Tax, dumping dumping, selling goods at less than the normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation. is a way to dodge unemployment insurance taxes by "selling" companies to a new related entity in order to receive a much lower tax rate.) The association has shown support for broad-based efforts to eliminate any practice that undermines the integrity of the unemployment compensation system. SUTA rates should be experience-based and equally applied to all. Thirty-five states now assign a professional employer organization its own experience rating based upon the actual experience of the worksite employees. PEOs pay unemployment contributions based on their experience rating. PEOs offer operational efficiencies that state and federal governments may not find possible to achieve when jurisdictions must collect unemployment taxes from myriad Myriad is a classical Greek name for the number 104 = 10 000. In modern English the word refers to an unspecified large quantity. The term myriad is a progression in the commonly used system of describing numbers using tens and hundreds. small businesses. PEOs ensure that payroll for all worksite employees is accurate and complete, and that taxes are properly reported and paid. Milan P. Yager Executive Vice President National Association of Professional Employer Organizations |
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