Confidential © 2016 RiseSmart, Inc. 1

LAYOFFS: Are You Cutting Costs Now Only to Drive up TAXES Later? Here’s how layoffs can affect your unemployment tax responsibility—and what to do about it.

“In business nothing can be said to be certain, except layoffs and taxes.”

— what Benjamin Franklin might say today

Confidential © 2016 RiseSmart, Inc. 2

How Unemployment Costs Add Up

Unemployment taxes contribute to an unemployment reserve against which unemployment claims will be drawn.

More claims made

Less money in your

unemployment reserves

Higher taxes next year to

replenish your reserves

Confidential © 2016 RiseSmart, Inc. 3

26 WEEKS

A Layoff This Year Affects Taxes Next Year

The more people you lay off and the longer people are laid off, the more unemployment claims made against your reserves—and the higher your taxes the following year.

The average length of unemployment

in the US

The length of an employer’s responsibility

for meeting unemployment claims

Confidential © 2016 RiseSmart, Inc. 4

How a Layoff Affects Taxes in the Long-Term

Employers are responsible for at least a portion of their former employees’ unemployment claims for a period of time after that employee has landed a new job. If the former employee is laid off by their new company, former employers pay a percentage of that employee’s unemployment claims. This further depletes the unemployment reserves and drives up unemployment tax in the coming year.

Confidential © 2016 RiseSmart, Inc. 5

To Mitigate Tax Risk, Your Employees Need

• Shorter time to landreducing the length of unemployment claims made against your company

• Better fitting, stable rolesreducing the chance that they will face a layoff in the next few years

How can you shorten landing times, help employees land more stable roles, and potentially reduce unemployment taxes after a layoff?

Download the White Paper to learn more >