Texas small businesses to pay more in unemployment insurances taxes

While the payroll tax for Texas small businesses will decline in 2011, employers in the state will pay slightly more in unemployment insurance taxes next year, according to the Houston Chronicle.

Approximately two-thirds of small businesses in the Lone Star state will pay the minimum of $70.20 in unemployment taxes per employee in 2011 - up $5.40 or 8.3 percent from 2010 levels. The figures are well above 2009 levels, when employees paid about $23 per employee. However, the tax dramatically increased after the unemployment fund was diminished by higher unemployment rates.

The state's unemployment insurance system receives taxes from approximately 240,000 employers, which are taxed on the first $9,000 of the employee's salary, the Dallas Morning News reports.

The good news for Texas employers is that their tax per employee will decrease in 2011. This year, employers paid $774 per employee, but will see that number decline by $31.50 next year.

Currently, about 240,000 Texas residents receive unemployment insurance, down from approximately 700,000 in 2009, according to the U.S. Department of Labor. The state's unemployment rate sat at 7.9 percent as of October 2010.

Unique views: 1,709

Total views: 1,709

Related Headlines