2 The Virgin Islands Daily News VIRGIN ISLANDS Tuesday, December 13, 2016 I f I | V.I. businesses face higher unemployment taxes territory struggles t d $69 million debt ByBRIANO’CONNOR—__Isurance’s Division of Fiscal and the automatic increase based on a Daily News Staff Actuarial Services in the Department — 66 SEE negative account, and lowered the of Labor. minimum rate to 0. Less money came Territory business owners will pay Virgin Islands business owners | don’t think there’s enough political willpower to do in, even as unemployment rates re- four times the normal federal unem- will pay the original 0.6 percent, plus ‘ i “ mained high and benefits remained ployment tax rate this year because an additional 1.8 percent caused by the kinds of thing necessary to fix the system. expensive. of an unpaid government debt, docu- _ the unpaid balance, for a total of 2.4 — Charles Engeman, A few steps could help move ments show. ; percent, Pavosevich said. an attorney who served on the Unemployment Insurance Advisory the system back to sound footing, The federal unemployment insur- At the fully discounted rate, an Council under the administration of Gov. John deJongh Jr. Engeman said. For example, better ance tax rate is traditionally 6 per- employer would pay $42 for each record-keeping would help reduce cent on the first $7,000 an employee employee earning $7,000. At the Vir- delinquencies. Reducing unem- makes. However, the federal govern- _ gin Islands rate, employers will have ployment insurance benefits and ment usually offers a credit of 5.4 to pay $168. 66 reducing the amount of time the percent, meaning most employers ac- After two years with an unpaid unemployed are eligible for unem- tually pay about 0.6 percent, accord- balance, the discount decreases by F ployment would both help. Verify- ing to the IRS. 0.3 percent each year until the total The business owners always bear the brunt of ing that those collecting unemploy- States — and territories — with discou