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A looming UI crisis is on the horizon for employers in the Commonwealth

A looming UI crisis is on the horizon for employers in the Commonwealth

December 16, 2024

Unemployment Insurance Saga Continues

If it wasn’t enough that Massachusetts:

  • Is one of the worst ranked in the nation for UI taxes.
  • Has extremely lax eligibility requirements.
  • Has the highest weekly maximum benefit in the US.
  • Is repaying $2.7 billion in covid assessments.
  • Is projected to jump at least one rate schedule from C to D on 1/1/25.
  • Awaits a federal decision on whether employers will be forced to pay for  $2.5 billion state accounting error.

 

The office of state auditor Diana DiZoglio conducted an audit of the Department of Unemployment Assistance (DUA) for the period of March 12, 2020 through December 31, 2021. The auditor’s report found:

  • DUA incorrectly paid Pandemic Unemployment Assistance (PUA) on behalf of individuals while they were incarcerated.
  • DUA incorrectly paid PUA benefits on behalf of then-current Commonwealth of Massachusetts employees who were not eligible to receive these benefits.
  • DUA did not report the overpayments to the United States Department of Labor Office of the Inspector General for further investigation.
  • The Executive Office of Labor and Workforce Development did not submit all Unemployment Insurance Trust Fund reports or ensure that they were submitted by required due dates.

 

NFIB has asked that Massachusetts lawmakers not only make much needed reforms to our broken UI system, but also ensure none of the state’s $2.5 billion error falls on the shoulders of Massachusetts employers.

We urge you to take a moment to remind policymakers, through NFIB’s action alert, that you are aware of this issue and monitoring how they are managing this growing crisis. Contact lawmakers here: Action Alert on UI Taxes.

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