Yesterday, Washington. Today, Tennessee

The Tennessee General Assembly has passed a retroactive tax increase on all Tennessee employers, designed to keep the state's unemployment tax fund solvent in the current recession.

Tennessee will now apply unemployment tax to the first $9000 of wages paid to each employee, up from $7000. This will increase the unemployment tax paid by employers by an average of $60 per employee.

Additionally, a surcharge of .6% will be applied to most employers, increasing the cost per employee an additional $54.

This is retroactive to January 1, 2009. Employers who report and pay the additional amounts due on or before July 31, 2009 will not be assessed late payment penalties.