What an Employer Needs to Know! - June 29,2010
The State Chamber/AIA hosted a webcast on June 29th entitled “Arkansas Unemployment Hearings – What an Employer Needs to Know.” The trust fund that pays Unemployment Insurance (UI) claims in Arkansas became insolvent in March 2009 due to the recession. Since then, the state has been borrowing money from the federal government to pay UI claims. As of May 3, 2010, the state had borrowed $330.9 million from the federal government. The projection for December 31, 2010 is for the state to be in debt $399.6 million. By December 31, 2012, the debt projection for the state is $510.0 million if this situation continues.
Arkansas is not alone in this situation. Thirty-five states have thus far borrowed money to cover their UI claims. The total projected debt by all states is $90 billion by the end of 2012. All of this debt will need to be paid back with interest that is scheduled to begin accruing in 2011. Understanding unemployment and how your company pays for it has never been more important. As costs continue to rise, managing your processes and protecting your company from claims that shouldn’t be paid can affect your company’s bottom line. For more information on Unemployment Insurance, click on the slide show PDF or the audio portion of the webinar below.
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