After paying off a $2.8 billion debt to the federal government in May 2015, Governor Pat McCrory and Commerce’s Division of Employment Security announced November 12 that the unemployment trust fund reserve has reached $1 billion. This is the first time the trust fund has exceeded $1 billion since May 2001.
By reaching this mark, the 20 percent state unemployment insurance tax surcharge will be discontinued, an extra burden that N.C. employers have been paying for ten years. These savings, along with receiving the full Federal Unemployment Tax Act (FUTA) credit will save employers more than $550 million in taxes during 2015-2016.
“This money can be used to hire more workers, which will ultimately add more money to the trust fund so we don’t get into another borrowing situation,” said Governor Pat McCrory. “We have paid off the debt five years early and reached an important balance in our trust fund at the right time to bring certainty to North Carolina businesses.”
N.C. Commerce Secretary John Skvarla said reforms in North Carolina’s unemployment insurance program sets the stage for more robust economic growth. “We care about the success of all business across North Carolina,” said Secretary Skvarla. “This tax relief is an important milestone that could lead to more jobs and business growth in our great state.”