The cost of layoffs in Unemployment Insurance taxes.

To date, there have been several theoretical attempts at measuring the marginal cost of layoffs in Unemployment Insurance (UI) taxes. This article discusses the development of a new measure, which shows, in the most practical terms, the impact of making a given number of layoffs on an employer's UI...

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Publicado en:Monthly Labor Review pp. 1 - 15
Autor principal: Pavosevich, Robert
Formato: Artículo
Publicado: US Department of Labor Apr2020
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: The cost of layoffs in Unemployment Insurance taxes.
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        au: Pavosevich, Robert
        affil: Formerly a lead actuary in the Office of Unemployment Insurance, U.S. Department of Labor
      su:
        Layoffs
        Taxation
        Unemployment insurance
        Direct costing
        Tax rates
      sug:
        subj:
          Layoffs
          Taxation
          Public Finance Activities
          Unemployment insurance
          Direct costing
          Tax rates
      ab: To date, there have been several theoretical attempts at measuring the marginal cost of layoffs in Unemployment Insurance (UI) taxes. This article discusses the development of a new measure, which shows, in the most practical terms, the impact of making a given number of layoffs on an employer's UI tax rate. In addition, the article derives a measure for the maximum number of layoffs that an employer can make before it is assigned the maximum tax rate. Through these derivations, and the discovery of relatively small tax impacts of layoffs, the analysis provides a more thorough understanding of the methods used in UI experience rating.
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      src: R
    language: English
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