Indiana is preparing to save employers $327 million next year by paying off a federal loan for its unemployment insurance trust fund. The move comes after the State Budget Committee gave the plan an enthusiastic response Friday.
When the recession hit in 2008, Indiana’s unemployment insurance trust fund was rapidly depleted, forcing the state to get a loan from the federal government. Every year that any part of the loan remains unpaid, Hoosier employers have to pay a tax penalty. This year, it was $105 per employee.