The National Federation of Independent Business (NFIB) has expressed concern over a recent state audit of the Department of Unemployment Assistance in Massachusetts. The NFIB, which represents over 5,000 members in the Commonwealth, highlighted potential challenges for employers due to issues within the unemployment insurance (UI) system.

NFIB State Director Christopher Carlozzi emphasized the need for reforms, stating, “This report underscores a need for long overdue unemployment insurance benefit and eligibility reforms. For too long the broken Massachusetts UI system has plagued employers, saddling them with some of the most burdensome taxes in the nation.”

Massachusetts is currently ranked 47th worst for UI taxes by the Tax Foundation. Employers are already facing an increase to schedule C in January 2024 and are projected to face another increase to schedule D in January 2025. In addition to regular UI taxes, business owners are also paying a Covid-19 assessment to repay $2.7 billion from pandemic-related layoffs.

Further complicating matters is an over-withdrawal of $2.5 billion from the federal government by the state. It remains uncertain if this expense will be passed on to employers.

Carlozzi added, “It is increasingly frustrating for employers, trying desperately to stay afloat in an already challenging environment, to witness more mismanagement of an unemployment trust funded by their tax dollars.” He called for lawmakers to address these issues urgently.

For eight decades, NFIB has been advocating for small and independent businesses across America. More information about their efforts can be found at nfib.com.