unemployment insurance trust fund

Harrison Wagner / WTIU

In the coming days, the state will pay off the remainder of a federal unemployment insurance loan.  The governor says it will save employers $327 million next year.  

The state’s unemployment insurance trust fund ran out of money when the recession hit, forcing Indiana (like many others) to take out the loan. As long as there’s still money left to be paid back on the unemployment insurance loan, employers pay a penalty, one that would increase next year to $126 per employee. 

Noah Coffey / https://www.flickr.com/photos/noahwesley/

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.