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government assistance to survive

 
 
tintin
 
Reply Sat 29 Dec, 2007 09:23 am
In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.


increased taxes !!

i am confused here ....people who are laid of ...they have to pay high tax !! ...otherwise whats the meaning of "increased taxes" ??

thanks & regards
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Type: Discussion • Score: 1 • Views: 827 • Replies: 4
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McTag
 
  1  
Reply Sat 29 Dec, 2007 09:33 am
Corporation tax
personal income tax
that's the difference.
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Setanta
 
  1  
Reply Sat 29 Dec, 2007 09:34 am
If this refers to the United States, then there is more than one type of tax which the corporations must pay. The increased taxes, in this context, refers to the taxes which the corporations pay. Each state in the United States has some form of unemployment compensation. If someone is laid off a job (which means they are let go, but not fired for cause), then they will be entitled to receive unemployment compensation for as long as six months while they look for other work.

I managed small businesses in Ohio, and can explain how this works in Ohio. If you are laid off your job in Ohio, you are entitled to receive unemployment compensation. Each employer in the entire United States pays a "FUTA" tax--"FUTA" stands for Federal Unemployment Tax Assessment. The employer files a FUTA Form 940 every quarter, but, usually, they only pay in the first quarter of the year, paying any adjustments at the end of the year. In addition, in Ohio, the employer files a ODJFS return every other quarter--the acronym stands for Ohio Department of Job and Family Services. In Ohio, the employer pays into a trust fund, which is invested by the state. In practice, the employer only pays an assessment on the first $9,000.00 which the employee earns each year. For many, and perhaps most employees, this means that the employer only pays the assessment in the first half of the year (while i was filing such forms, they were filed only twice a year, with a reconciliation at the end of the year).

When an employee is laid off, or is fired for cause (for doing something against the rules of employment) but wins an appeal, they are entitled to receive an unemployment benefit which is based on the amount of money they earned while employed. This is paid for partly with Federal money (which comes from the FUTA Form 940 assessment), but mostly from state funds (in Ohio, that is the money assessed on the ODJFS form). In Ohio, if the employee exceeds the amount of money which the employer has in their trust fund account, the employer will have to pay a special assessment to cover the excess cost. That is rare, but since the assessments are based upon an actuarial figure which is based on the probability of the risk of an employee drawing unemployment compensation, the trust fund account for an employer can be almost wiped out by one employee who draws the full six months of employment compensation, and then qualifies for an additional period of unemployment benefits. In Ohio, this means the employer would be required to make a new deposit for the trust fund, which at the time that i filed such paperwork, would have been $10,000.00

So, the reference to additional taxes is a reference to the additional costs employers have to pay for various unemployment compensation funds.
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tintin
 
  1  
Reply Sat 29 Dec, 2007 09:42 am
thanks for the detailed explanation.

that was beautiful.

we don't have such unemployment compensation fund in our country ....it seems thats a good initiative by the US
0 Replies
 
SULLYFISH66
 
  1  
Reply Sat 29 Dec, 2007 03:06 pm
In many corporations, employees are being replaced by automated equipment in order to save money. However, many workers who lose their jobs to automation will need government assistance to survive, and the same corporations that are laying people off will eventually pay for that assistance through increased taxes and unemployment insurance payments.

The "assistance" that the government might have to provide to these laid off workers is in the form of food stamps, medical coverage, and other welfare benefits. These benefits are paid for by our taxes.

So the paragraph warns that corporations who replace workers with automated machines may have to turn around a pay taxes for welfare benefits for those same workers, who now have been laid off from their jobs.
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