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ESCANABA -- Tough economic times have depleted funds that help pay unemployment benefits, and now the state is asking businesses to help replenish the funding.

Recently, the state sent out notices to more than 40,000 businesses across Michigan, explaining the need to start paying what they call a "solvency" tax.

Kathy Skok and her husband run four businesses in the Manistique area.  They say an additional tax that could add up to $67 more per employee could be more than they can handle. 

"Our fears are what if this isn't enough?" explained Skok.  "What if they come back and say we have to pay 10 percent of our solvency balance or more?"

Due to economic decline over the last several years, officials say the Trust Fund to pay for unemployment benefits has run out, leaving the state no choice but to borrow money through Federal loans.  But now, officials say, they need to pay those loans back.  To do that, they're requiring those businesses who've accumulated a negative balance--those who've paid less than the agency has paid out--to help pay back the loans.

That's done through the solvency tax...beginning in the 2009 tax year.

CPA Kathy Paulson says businesses she assists feel it's a neverending, vicious cycle.

"People are getting tired, business owners are getting tired of that, of constantly having their taxes raised and expenses going up and struggling to make payroll and you know, getting a bill in the mail from the State of Michigan," said Paulson.

The tax goes into effect January 1.