State board: employers face $900 mil in penalties

“Missouri employers will still face up to $900 million in federal penalties unless the legislature takes action,” said AIM President Gary Marble, in an Aug. 26 news release from the trade association.

The board has determined the new law, House Bill 1268, does not satisfy either the short-term or long-term goal of trust fund solvency, the release stated.

The board also agreed with AIM’s concern that the bill violated the Hancock lid under the state constitution. The Hancock lid limits the ability of the state to collect more than $75 million in new taxes. But the new legislation permits the state to impose up to $236 million in new taxes on employers.

The board outlined four options, two of which require calling the General Assembly into special session. One option includes Gov. Bob Holden requesting the General Assembly to declared an Unemployment Trust Fund emergency, and the others mean that employers lose up to $900 million over the next four years.

“Employers cannot afford to lose $900 million,” Marble said. “Coming off the worst recession in memory, our employers are just getting back on their feet.”

AIM is a business and industry trade association representing more than 1,200 Missouri employers.