Do you ever wonder who pays for the unemployment benefit that is distributed to the unemployed? Most of us probably don&rsquo;t have any idea we just take it for granted. <br />
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The truth is that it comes from the State of Michigan&rsquo;s from businesses that contribute to that fund. Additionally, because of Michigan&rsquo;s high unemployment rate, we have had to borrow money from the federal government to make the payments to the benefit recipients. Currently the state owes the federal government $3,100,000,000.00 for money they have given to recipients to pay for the benefit.<br />
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Because of the high unemployment rate businesses are having to pay higher unemployment insurance fees and they are scheduled to go even higher. As a result businesses won&rsquo;t hire.&nbsp; If they do and then they have to lay off employees it will be even more of a burden. So they make do with the employees they have.<br />
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To address the problem Michigan lawmakers are considering a Senate bill that would authorize the state to issue bonds to repay the $3.1 billion to be repaid by an assessment on businesses over a period of several years. The proposal has the backing Governor Snyder administration.<br />
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For Michigan there is no quick fix.<br />
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For an article outlining the issues, the problems, and what potential solutions are available click on the following story link:<br />
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<a href="http://www.lansingstatejournal.com/article/20111125/NEWS01/111250321/Michigan-employers-face-higher-jobless-tax?odyssey=tab|topnews|text|FRONTPAGE">http://www.lansingstatejournal.com/article/20111125/NEWS01/111250321/Michigan-employers-face-higher-jobless-tax?odyssey=tab|topnews|text|FRONTPAGE</a><br />