Dear Obama...Why Small Businesses Aren't Hiring

Pundits and politicians alike (well, at least half of the politicians) have drilled down to a key word to explain the continued lag in our nation's unemployment.... UNCERTAINTY. Add my name to the long list of hundreds of thousands of small business-owners who have not wanted to hire in the past several months due to uncertainty.

Uncertainty... regarding payroll taxes attributable to a broken unemployment insurance system. Our payroll cost for SUTA (state unemployment tax) increased 300% in January of this year, raising our payroll costs by more than $20,000 relative to last year. With this additional $20k, we would have been thrilled to hire another employee, but not while we're busy subsidizing Florida's bankrupt UI system.

Uncertainty... regarding impending changes to the healthcare system and how this will affect payroll costs.

And... drum roll please for my favorite....

Uncertaintly... regarding the very programs that were designed to put people back to work. We have delayed hiring two full-time employees in order to take advantage of the Florida Back to Work program, which draws down federal stimulus funds to subsidize employment of individuals receiving unemployment insurance. This is a great plan.... in theory. After applying to the Florida Back to Work program three months ago, South Florida Workforce -- the agency charged with administering the program -- maintains that our application is 'in process' with no sign of approval prior to the initial expiration of fund availability on September 30th.

Had we -- and doubtless countless other employers -- had been given realistic expectations of how ill-equipped South Florida Workforce was to execute on this federal program, we would have hired *un-subsidized* employees three months ago and started stimulating our local economies. Instead, the poor execution of and uncertainty surrounding this program has delayed employer action -- leaving qualified unemployed individuals on the federal dole -- while employers sit on their hands watching their businesses stagnate rather than grow.