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Brace for payroll bite

Initiative 1082 would have allowed private carriers to provide workers’ comp insurance. Since this was on the ballot, officials did not disclose proposed rates for next year. Now that they have no competition, the proposed increase is 12 percent. This year’s increase was an average of 7.6 percent.

I hope everyone is aware that this affects employees as well as employers. Part of the premium can come directly from the employee as a payroll deduction. Of course the lion’s share comes from the employer. This is a substantial increase, and if the past and present is any clue, it won’t stop happening. My company has one third of the employees we had at the beginning of 2009. I’m not seeing a noticeable decrease in the premiums, because of the rate increases.

My employer is struggling to keep our business open. This is going to hurt the few of us that are still here and the company will struggle to meet the increase.

For everyone who thinks the government is needed for everything, remember there is an extreme cost involved and not everyone can afford it.

Melody Ervin



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