Gay Dwyer

Government
1:19 pm
Tue March 13, 2012

House Committee Passes Unemployment Insurance Fix

A compromise to help employers avoid high federal unemployment insurance taxes has easily cleared a House committee.

The proposal would allow Kentucky to borrow money from a bank or other organization to repay federal loans. Kentucky borrowed nearly one billion dollars from the federal government to pay for unemployment insurance during the recession.

Up until now, the state had no plan on how to keep up with interest payments on that loan. If the state is late on payments, the federal government can put a higher tax on employers to recoup the funds.

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