ABCO Payroll Services®

By Roger Reynolds

Two years ago we published an article on the "SUTA Dumping" law that became effective in Florida on January 1, 2006. The law prevents employee leasing companies from moving their leased employees to an entity with a lower unemployment tax rate to avoid state unemployment taxes.

With the down turn in the economy and the rising unemployment rates, employee leasing companies are going to be hit with higher state unemployment rates in January of 2009. They are going to be forced to pass those rates on to their clients or accept lower earnings.

Why is this important? Even if your clients who are with employee leasing are not ready to make the change now, keep them on your list for next year. Eventually, they will get tired of paying the high cost of employee leasing and make the change.

Click here to read the complete article on "SUTA Dumping".