Status of Ohio Unemployment Fund
Updated : May 25th, 2010
The unemployment seems to be taking its toll in Ohio now. It seems that the Ohio’s unemployment fund is broke. This is because the tax that the employers pay to subsidize the unemployment fund id being reduced this year.
Ohio has been one of the thirty three states that has been borrowing from the federal government to continue funding the unemployed who has lost jobs due to the recession. Ohio has borrowed more than $2.1 billion and will have to start paying interest on it in January 2011 at an annual rate of 4.66 percent. So in such a situation, many of them have been asking about why the tax has been cut.
The unemployment funding comes from the payroll taxes paid by the companies. According to reports, One key part of each employer’s tax was reduced by $18 per worker. That adds up to tens of millions of dollars that won’t be going to the fund.
Experts feel that Ohio should avoid tax cut that happens automatically from its insufficient unemployment fund. It is important to remember that unemployment compensation is very critical for those workers who have lost jobs for no fault of theirs. As per the news, last year, more than half a million of people in the Ohio State received unemployment compensation. With jobless spells lasting longer, nearly 250,000 remained on state benefits so long that they ran out.
If you need more details about the unemployment benefits comparison by state, then you can refer to Ohio State Unemployment benefits guide.