2010 Legislative Briefing Presentation
12 Reasons Why Employers Should Care about Health Care Reform
Climate Change Legislation Would Harm Indiana
2008-2009 IMA Environmental Policy Handbook
IMA Daily Update
Member Health Care Alert - 1-11-10
October 2009 Indiana Employment Report
Indiana Manufacturers Association Supports Call for Delay in Unemployment Insurance Tax Increases
An Interview with Pat Kiely
Calculate Your Unemployment Tax Per HB 1379
Click here to view the IMA Daily Update Click HERE to view the alert. Indiana's preliminary seasonally-adjusted unemployment rate showed little change in October, the Indiana Department of Workforce Development reported today.
Indiana's preliminary rate of 9.8 percent marks an increase of 0.1 percent from a revised September rate of 9.7 percent (+0.1 percent). Indiana's month-to-month change is considered statistically insignificant. The national unemployment rate increased in October 0.4 percent to 10.2 percent.
"Indiana's unemployment rate has held relatively steady for the past three months despite a steadily climbing national rate," said Teresa Voors, Commissioner of the Indiana Department of Workforce Development. "However, a projected soft holiday retail season combined with a slump in manufacturing and hospitality employment tempers my optimism concerning the coming months."
Seasonally-adjusted total non-farm employment in Indiana declined by 1,600 in October. Indiana reported the largest employment declines in manufacturing (-5,000), mostly attributed to a slowdown in domestic automobile manufacturing following a temporary "Cash for Clunkers" spike, and leisure and hospitality (-5,900). Sectors reporting large job increases include: construction (4,000), professional and business services (2,200) and financial activities (2,200).
Indiana continues to report the lowest unemployment rate of its neighboring states. Illinois increased 0.5 percent to 11.0 percent. Ohio's unemployment rate grew 0.4 percent to 10.5 percent. Kentucky increased 0.3 percent to 11.2 percent. Michigan decreased 0.2 percent to 15.1 percent.
Indiana's unemployment rate stood at 6.4 percent in October 2008.
It looks as though your calls, emails and letters are making a difference. This afternoon, President Pro Tempore David Long announced a plan to delay the scheduled increase in Indiana’s unemployment insurance taxes. This delay will save Indiana employers an estimated $262.5 million next year in additional unemployment insurance taxes. Any delay will require action by the entire Indiana General Assembly and a signature of the governor.
The top priority of our state should be saving existing Hoosier jobs during this severe economic downturn. Given the new data that has come to light since the legislature adjourned, we think a delay in the scheduled unemployment insurance tax increases is a wise and prudent action.
Even with a delay and under current tax schedules, Indiana employers should be aware that many could still see tax increases next year if they have had to reduce their workforce and had unemployment claims charged to their account.
The general assembly passed HEA 1379 in the 2009 legislative session. HEA 1379 contained significant employer-paid tax increases to fund the payment of unemployment benefits. Currently, Indiana’s unemployment insurance trust fund is insolvent; and the state is borrowing funds from the federal government to pay unemployment benefits.
This is not a unique situation. Because of the recession, currently 20 states and the Virgin Islands have insolvent trust funds, with approximately 10 additional states near insolvency.
So far in 2009, Indiana is the only state that enacted significant unemployment tax increases. There was concern from the outset what impact this would have on existing employment and future economic growth. A delay in these tax increases will save $262.5 million in 2010, and allows additional time to have a better understanding of an economic recovery and possible federal intervention and assistance. The IMA encourages the general assembly to approve this delay as soon as possible and put Hoosier jobs first.
We will continue to advocate for IMA members and keep you apprised of this developing situation.
Go to: http://www.howeypolitics.com/2009/07/22/ominous-jobs-forecast-for-indiana/ Click HERE to obtain a pdf document on which you may calculate your unemployment insurance tax increase.
Indiana Manufacturers Association . One American Square, Suite 2400 . Box 82012 . Indianapolis, IN 46282
Phone: 317-632-2474 or 1-800-462-7762 . Fax: 317-231-2320.
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