Maine to recover overdue unemployment contributions — from tax refunds
Maine employers owe about $6.8 million to the state because they're delinquent in paying unemployment taxes, penalties and interest.
Now the Maine Department of Labor plans to recover the money by offsetting federal income tax refunds in partnership with the Internal Revenue Service, according to a news release.
The delinquent contributions are as much as 10 years overdue. The state expects to collect hundreds of thousands of dollars over the next year through the federal Tax Offset Program.
The vast majority of unemployment contributions are paid on time, but the Department of Labor said it wants to level the playing field.
“Unemployment benefits are funded solely by employer-paid contributions. The successful recovery of delinquent contributions ensures that employers who pay their contributions timely do not pay more than their fair share," Labor Commissioner Laura Fortman said in the release.
The Maine Unemployment Insurance Program provides benefits to eligible workers who are unemployed through no fault of their own. The state says the program is important not only to individuals, but to businesses and the communities. By receiving partial wage replacement, Mainers are able to continue to support their local businesses and communities while searching for new employment.
Letters are going out this week to businesses owing unemployment contributions over $25 that have gone unpaid for at least 12 months.
The letter informs employers that they owe money to the unemployment program and are eligible for the offset. The letter gives them a chance to pay the department directly for the total amount due or to set up a repayment plan.
If the debt is not paid or a repayment plan not set up within 60 days, the department will submit the debt to be offset through the federal income tax process.
Most Recent
Most Recent
0 Comments