Small business owners are getting crushed by unemployment insurance premium increases

Unemployment insurance rates are skyrocketing for small businesses.

This is largely due to the coronavirus pandemic, according to experts, who say that the premium increases were brought on by the sheer volume of people who tapped into the system.

The premium is what business owners pay to fund the state system. There were a record number of unemployment claims in 2020, as businesses across the state were shut down due to COVID-19.

Issues with the unemployment system were rampant- whether it be fraudulent claims, or individuals simply not getting what they were entitled to receive by the law.

“We were told over and over last year don’t worry that you can’t argue unemployment, you’re not going to get your rate changed next year, we understand it’s a pandemic just go with the flow,” said Kelly Metras while speaking with News10NBC. She owns Salena’s Mexican Restaurant and Not Restaurant, both located in Rochester.

She says the state isn’t keeping its promise. They aren’t being hit hard for the volume of claims they had last year. But are being punished through skyrocketing premiums.

This comes as businesses struggle to make ends meet after a year of lost revenue.

Staff Report

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