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State to bill businesses for interest on unemployment insurance loan

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State to bill businesses for interest on unemployment insurance loan

By Don Walker of the Journal Sentinel

June 23, 2011 9:58 a.m. |(65) Comments

The Department of Workforce Development is sending out letters to businesses this week notifying them of a special assessment that will be used to pay interest on the state's $1.3 billion federal unemployment insurance loan.

The assessment will be billed in early August and due the next month.

Wisconsin is among an estimated 30 states that exhausted funds used to pay unemployment benefits. As a result, the state borrowed money from the federal government to pay the claims.

The federal government began charging states interest on those borrowed funds at the beginning of the year.

The Department of Workforce Development said failure to make the interest payment by the end of September would expose the state to loss of federal grant funds to administer the unemployment insurance program, as well as the loss of federal unemployment tax credits for employers.

The state's trust fund to pay jobless benefits was depleted in February 2009.

Agency officials said businesses will learn exactly how much they owe in August. Businesses that are affected are those with taxable payrolls of more than $25,000 in 2010.

At the same time, the department's Unemployment Insurance Advisory Council will consider sending state lawmakers a proposal for legislation that would allow Wisconsin to offer 13 more weeks of federally funded extended unemployment benefits, or up to 86 weeks.

The benefits ended on April 16.

http://www.jsonline.com/business/124420934.html




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