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Senate Approves 1-Year Delay In Payroll Tax

Last updated on Wednesday, January 13, 2010

(STATEHOUSE, IN) - The senate has approved a one-year delay in a new payroll tax grid to fund unemployment benefits.

But the measure faces an uncertain future in the house.

Senate democrats say they support the concept of a delay, to avoid a tax hike on many Indiana businesses in the midst of a recession.

But after backing the bill in committee, they withdrew their support to protest a last-minute amendment allowing employers to dispute a decision to award benefits by faxing a form to the state.

Portage democrat Karen Tallian notes the federal government scolded the Department of Workforce Development last year for taking longer than the prescribed three weeks to issue decisions on benefits.

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