Business Report: Labor committee meeting - Hawaii News Now - KGMB and KHNL

Business Report: Labor committee meeting

HONOLULU (HawaiiNewsNow) - The house labor committee meets Tuesday morning to consider two different bills to give relief to employers from a huge jump in the payroll tax. The meeting is at 9 a.m, state capitol, conference room 309. The chamber of commerce of Hawaii is asking business executives to give testimony - a minute is plenty.

Employers pay hundreds of dollars a year per employee to fill the unemployment insurance fund. If you're thrown out of work and get jobless benefits, that's where the money comes from.

The fund is now so depleted, if the payroll tax is simply jacked up to fill it, some employers would pay a thousand dollars per worker, enough to put some small businesses out of business. In most cases the result would be postponing raises or hiring more people back, undesirable when you're trying to claw your way to recovery.

Governor Lingle has proposed reducing the payroll tax increase by 40 percent, but that still leaves a big increase. Darwin Ching, the state labor director, has sent word any employer that needs a briefing, he'll help out.

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