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Feeling Blue about Pink Slips

Sarah E. Needleman

With pink-slip taxes increasing, more small-business owners may be motivated to appeal claims for unemployment benefits filed by former employees who quit or were fired for cause—but such appeals can
sometimes backfire.

U.S. employers are required to make regular tax contributions toward unemployment insurance. They're taxed at a rate that varies by state and the size of their payroll. That rate can increase as a business lays off
more employees.

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