NC’s UI Debt Falls $1.5 Billion
At the beginning of 2013, North Carolina employers were facing a $2.6 billion debt to the federal government for North Carolina’s unemployment insurance system. Not to mention, there was no plan in place to restore solvency, affordability and integrity to the broke and broken system. The North Carolina Chamber, along with dozens of businesses, local chambers and allied business organizations, spearheaded reforms (House Bill 4) that give employers greater certainty by putting a plan in place to repay the $2.6 billion debt in three years. There has been drastic reduction in the state’s UI debt, dropping $1.5 billion since January 2013. The North Carolina Chamber commends Governor McCrory and the legislature for taking action to provide real solutions to our state’s unemployment system that encourage North Carolina businesses to create the jobs our citizens desperately need. Read more in the Governor’s press release
Until the debt is completely paid off, North Carolina still owes interest on the debt, which employers are responsible for paying through additional FUTA taxes. As of May 8th, nineteen states, including North Carolina, had outstanding interest due as reflected below and interest continues to accrue on balances due and unpaid. Through House Bill 4, North Carolina will be able to eliminate its debt, and in turn, return employers to their original FUTA levels faster.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber