Summary
On November 10, 2011, states that borrowed from the federal Unemployment Trust Fund (UTF) account in 2009 were required to pay off the outstanding balances on those loans. Employers in states that did not make this payment or did not qualify for credit reduction avoidance will receive a 0.3 percentage point reduction to the credit applied to their Federal Unemployment Tax Act (FUTA) tax rate for 2011.
This Issue Brief provides information on the 2011 credit reductions and new legislative proposals to reform Unemployment Insurance (UI) solvency.