Unemployment tax overcharge adds additional stress to already struggling businesses in New Mexico

(The Center Square) – Amid difficulties finding willing workers and the constant threat of another shutdown, many businesses have also been overcharged by the state on their unemployment insurance taxes.

A bill passed in June last year ensured businesses’ rates would not change if they laid off workers due to COVID-19. But now, businesses are seeing bills thousands of dollars higher than usual.

The owner of Artichoke Café, Terry Keene, said the timing of this is unfortunate, KOB-4 reported.

“I paid over 5% for each one, which is an amazingly high number, dollar number,” he told KOB. “Up to $7,000 or $8,000 when I usually pay $600 or $800. So, I understand that was a mistake.”

Rob Black, president and CEO for the New Mexico Chamber of Commerce, said this has caused a lot of additional stress for businesses.

“Folks are getting these large increases in their rate and it is at a time when they’re maybe not operating fully or trying to get back on their feet, and it has certainly been stressful,” Black told The Center Square.

He adds that businesses appreciate efforts made on the part of the acting secretary of Workforce Solutions to rectify the matter.

Acting Secretary Ricky Serna has ordered a reevaluation of all businesses, approximately 8,000, who received a rate increase this year.

“If they find that it is incorrect, that they did overcharge, that they will send out a new bill to the employers with their adjusted rate,” Black said. “If the employer has already paid and he has paid too much or she has paid too much, they will credit that additional payment to their account so that it’ll go to paying off future taxes.”

Right now, Black is not aware of any provision for helping those businesses for whom the overpayment has created a cash flow hardship.

Disclaimer: This content is distributed by The Center Square