LINCOLN, Neb. -- Nebraska businesses will be hit with a sharp increase in their tax bills next year to replenish the state's unemployment fund after a year in which state jobless benefit payments more than doubled to $190 million.
Nebraska is one of 33 states expected to increase its unemployment tax in 2010 in response to the sharp increase in the number of people claiming jobless aid over the past year. But the tax hike comes at the worst possible time: when a fragile economy recovery is taking shape.
And some Nebraska businesses could be surprised by the increases because this is the first recession since the formula for the state's employer-funded unemployment fund was revised in 2005. Tax notices will go out to businesses over the next week.
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