Unemployment Insurance

States are beginning to pass interest assessments to employers to pay for interest on funds borrowed from the federal government to money the depleted state unemployment levels. Legislation was introduced by the Senator of Illinois which would provide relief to states and employers, preserve unemployment benefits, and create incentives to those states that manage trust funds effectively. Currently, 28 states have outstanding loans from Federal Unemployment. If this legislation is not passed, 25 states could have FUTA reduction in 2011.