COLUMBIA (WACH) - Relief could be coming to small business owners in the form of a tax reduction in the amount they pay into the state's unemployment trust fund.
The Department of Employment and Workforce says it's similar to car insurance. A law passed last spring allows small businesses to pay into the trust fund at a rate by which they use it.
"Those that don't use it as much will see a decrease, those that use it more will see an increase."
DEW Spokeswoman Adrienne Fairwell says the law will affect 45,000 small businesses and places them in a tax bracket based on how many people they employ and how many of them are laid off.
"This tax rate class, what it does is allows for a replenishment if you will of the trust fund, when it needs it, and a decrease in those tax rates when it's sustainable."
Fairwell says the state is hoping the debt-ridden trust fund is replenished by 2015
"There are certain employers that will see a decrease in some areas, so it will depend on what their employment base would look like over the past seven years, if that data was available."
The new rates will go out to businesses this week. WACH Fox will talk to a business owner Wednesday who says the higher rates unfairly penalize businesses that naturally have more turnover.
He says the higher rates will stop businesses from hiring.
Do you think the law is helpful? Leave a comment below to weigh in.
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