Irvine, CA -- (SBWIRE) -- 09/02/2011 -- As part of its support strategy for client businesses, HR consulting specialist Emplicity is spreading the word about voluntary contributions as a viable unemployment tax planning strategy for lessening the tax burden. Emplicity is a leading HR outsourcing services company specializing in employee management for small and medium-sized businesses.
The current economic downturn is leading to more states depleting their unemployment trust funds. In fact, a total of 28 states (as of August 11, 2011) are looking to the Federal Government to pay unemployment benefits. As a result of this new landscape, states are looking to increase tax revenues through legislative action, mandatory increases and aggressive collection efforts. Vic Tanon, Chief Simplicity Officer at Emplicity HR Outsourcing explained the company’s position:
“The unprecedented depletion of unemployment reserves at the state level speaks to the two major forces behind its demise: a system that rewards and prolongs the unemployed in America and the economic recession that broke it. As business leaders and entrepreneurs at the nexus of job creation it is once again up to us to bear the brunt of higher taxes and an increased cost of doing business.”
In an effort to help businesses better control those taxes, HR Outsourcing specialist Emplicity has been educating employers about voluntary contributions—a special payment made during a specified period to reduce an employer’s unemployment tax rate for the following tax year. Depending on the state, once the additional tax payment is processed, the employer’s unemployment tax rate is revised to a lower rate.
The HR consulting and employee management firm is no stranger to the needs of small and medium sized businesses. As a Professional Employer Organization (PEO) they offer services such as payroll administration, employee benefits plans & taxes as well as regulatory compliance. “As the advisor to small and mid-sized companies, Emplicity HR Outsourcing is evaluating strategies to proactively manage its unemployment risk, including the adjudication of fraudulent unemployment claims and the management of our clients’ unemployment insurance accounts,” said Tanon.
The goal of PEO services is to help companies manage all aspects of human resources and employee leasing so that they can focus on their core business. “Paying higher taxes and continuing to run an unemployment system that is broken is no longer an option to the small business owner,” said Tanon.
For more information on Emplicity, please visit http://www.emplicity.com/