Have you received an exorbitant SUTA bill? Take Action NOW!
Legislative Alert URGENT CALL TO ACTION:
If you are a business effected by a SUTA bill that was shocking please show up and testify. We know you are busy, but your testimony can make a difference in your next SUTA bill. It’s worth your time!
We need HELP! HB482, a bill to REDUCE SOME UNEMPLOYMENT BENEFITS, will be heard tomorrow, Saturday February 28, at 9:00am, in room 309 at the State Capitol. We need business people and associations to show up in support of this bill. A few business organizations, including NMRA have been working with Representative Larranaga to find a solution to the outrageous SUTA bills many of our members received earlier this year.
BACKGROUND: The health of the NM Unemployment Insurance (UI) Trust Fund is in jeopardy. That’s not good for New Mexicans out of work or for employers who have increased their UI tax payments to fund unemployment benefits. But help from the Round House is on the way! This bill will help ensure solvency of the UI Trust Fund for those who need it most by getting New Mexico more in line with other states for unemployment benefits.
Why is There Trouble for New Mexico’s UI Trust Fund? In 2013, to address the impending insolvency of the Unemployment Insurance trust fund, the legislature reformed the way Unemployment Insurance contribution rates are calculated in New Mexico. The new rate calculation methodology became effective January 2015. That means many businesses have seen changes in how much they are paying – some drastically. Now that the new formula has been implemented, we can evaluate Unemployment Insurance benefits as compared to other states around the country.
With that analysis done, a few things are clear and it’s not good news for the long range solvency of our UI Trust Fund: 1) Compared to other states, NM is currently one of the most generous in how maximum unemployment benefits are calculated; 2) The NM UI Trust Fund’s solvency is still in jeopardy and if not properly addressed could lead to the federal government taking over control of the fund. This has happened in several states already; 3) Many NM employers are struggling with increased UI rates and want to know their tax dollars for the unemployed are maximized in the best way possible; and 4) Even though many businesses have increased their UI payments, NM Workforce Solutions projects the 2015 year-end balance of the UI Trust Fund will not be adequately funded per US Department of Labor standards.
SAMPLE LETTER: Insert the following addresses into your email service, and then cut and paste in the sample letter below.
As a New Mexico employer who pays unemployment taxes and cares about those who lose their job through not fault of their own, I am writing to encourage your support of HB 482 Reduce Some Unemployment Benefits.
This legislation would help ensure solvency of the Unemployment Insurance Trust Fund for those who need it most by bringing New Mexico in line with benefit payments in other states. Many employers are paying more into the UI Trust fund and this bill will help ensure the best use of those funds. Even with increased UI payments from our struggling businesses, NM Workforce Solutions projects the 2015 year end balance of the UI Trust Fund will not be adequately funded per US Department of Labor standards.
Please vote ‘Yes’ on HB 482.
Thank you for your consideration of this important and timely legislation.