NFIB leads effort to transfer federal stimulus into the state’s Unemployment Insurance Trust Fund
NFIB and fellow business organizations sent a letter to Governor Larry Hogan and the legislature’s presiding officers encouraging them to transfer $800 million of federal stimulus, available through the American Rescue Plan Act (ARPA), to sure up the state’s Unemployment Insurance Trust Fund (UITF).
From March through September of 2020 alone, the UITF paid out $1.4 billion in unemployment benefits to claimants. As a result, employer rates increased to Table F, the highest tax table for unemployment insurance tax rates.
NFIB already succeeded in securing an experience rating waiver for small businesses forced to lay off or furlough employees during last year’s unprecedented economic crisis. The concern now is that employer UI tax rates will remain at the state’s highest possible rate without substantial help in the form of federal or state stimulus.
NFIB will continue to press for a transfer of federal funds into the UITF as it awaits guidance from the U.S. Treasury Department. Legislation has been introduced as a placeholder to provide subsequent rate relief should the financial assistance materialize.
Please contact your state director if you would like more information about this issue and how to get in contact with your representatives in Annapolis. Mike O’Halloran can be reached at [email protected].