The Department of Workforce Development requested to borrow $300 million from the federal government to pay state unemployment insurance claims. Those receiving unemployment benefits will be paid as usual, but it could mean higher payroll taxes for businesses in the future.
Before the pandemic, the state had saved up about $900 million from employee payroll taxes. As of Thursday, that fund was depleted to under $100 million.
The federal Department of Labor said that despite signaling a need for an advance, Indiana has yet to withdraw federal funds. They add that even when states request authorization for an advance, sometimes they don’t actually use it.
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If the state does withdraw funds, it will be charged 2.4 percent interest that begins accruing in 2021.
Contact reporter Justin at jhicks@wvpe.org or follow him on Twitter at @Hicks_JustinM.
