Payroll taxes

A couple of choice things are happening in the employment rich state of Ohio.

Starting in 2007, the state unemployment wage base has been raised to $9,500 up from $9,000 for as long as I can remember. So.... assuming a base rate of 2.7%, you'll be paying another 13.50/employee to go along with that increase in the minimum wage.

Not to be outdone, Ohio worker's comp. increased it's minimum fee from $10.00 semi annually to $50.00. The minimum fee is usually charged to sole proprietors that have no employees but wish to have a certificate so companies they contract with are not liable for their coverage. Note, these companies receive no worker's comp coverage from exempting themselves. So $100.00 a year just goes right to the worker's comp fund.

In comparison, Kentucky's base unemployment rate $8,000. So for the average company, you'll pay about $40/more per employee for the "privilege" of doing business in Ohio.

Most people do not realize that nearly in every state in the country, employers can buy worker's compensation insurance from their insurance carrier, essentially allowing the private sector to competitively price their insurance. In Ohio, all employers are required to purchase their workers comp through the state and the state dictates the rates for all professions.

As a result, coverage costs are extremely high in this state as compared to others.

At least our business environment is better than Michigan and North Korea; and so is our football.