Michigan firms to pay more taxes for jobless

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By WSBT News1

Story Created: Nov 15, 2008 at 12:12 PM EST

Story Updated: Nov 15, 2008 at 12:59 PM EST

DETROIT (AP) &mdash State officials have informed 40,000 Michigan businesses that they will pay higher unemployment taxes in January because of a more than $470 million shortfall in a jobless benefits fund.

The Detroit News and Detroit Free Press report Saturday that the Michigan Department of Labor and Economic Growth has informed the employers that they must pay an extra $67.50 per employee in 2009. That's money the state had to borrow from the federal government to pay benefits.

The increase will affect businesses whose laid-off employees have collected more in benefits than the employers paid into the fund.

Officials say it's the first tax increase since 1982. The state borrowed money for benefits in 2006 and 2007 but was able to pay off the loan without raising the tax.

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