I am all for helping people who truly cannot find a job. That is a point I want to make and hope you remember.
IN DWD, who handles Indiana's state unemployment, has been passing around notices about a Mutualized Benefit Charge (MBC). Because we have so many people on unemployment benefits, IN is taking money from honest, hard working businesses who play by the unemployment rules, continue to hirer new people, and have a very low turn over if any. They are having their "account" that they've been paying their SUTA into debited. This will undoubtedly raise their SUI rate next year. (SUI rate is calculated by the ratio of payroll compared to amount accumulated in their "account").
Now, I can understand part of this if the person was let go by a company that no longer exist, or the company's "account" has emptied. However, and I quote straight from the notice sent out, "The MBC is simply a more equitable way of determining a company's share of benefits paid to any unemployed person when the former (base period) employer is held not liable or responsible for those benefits." I thought a person did not receive unemployment benefits if they were terminated for just reasons. Why are we paying unemployment for those people
I believe our SUTA is having some issues here. I understand the job market isn't what it was 5 or 10 years ago. It won't be for a long time. If you were working in a factory job, unfortunately, there is little hope to see jobs like that again at the same level of pay and benefits. However, IN DWD isn't making it very motivational for those to go get a job.
1) The benefits they are paying out is more than what most people would get paid for if they went out and got a job today. I know this for a fact. Family and friends have shared this with me. They are planning on living on unemployment as long as they can.
2) About a year ago, we had several clients ready to hirer dozens of new employees. Then, Indiana decided to extend the benefits another year. All of a sudden, these "to-be-hired" people could not be found anywhere. I am glad to hear that Indiana did not extend the benefits again. I have a feeling that we will see the unemployment numbers decrease rapidly once their benefits run out.
Sorry to the responsible companies out there. You work hard and pay your due diligence, but the irresponsible companies and the unemployed who are irresponsible just made your over head a little bit higher. Unfortunately, I don't think this will be the end of the effects caused by these unemployment issues.
Once again, I want to state I am in 100% support of those unemployed who are honestly made unemployed and are earnestly seeking employment. I hope to all that we see your names come by our desk as new employees to our clients. Good luck to the companies and the unemployed!
