Business representatives from state and national business associations by letter dated August 3, 2020 joined to ask Congress to provide unemployment tax relief from the dramatic increases in unemployment taxes and costs to employers due to unemployment compensation paid because of the COVID-19 shut downs. The closing of businesses due to COVID-19 was made by Governors and the federal government, causing unprecedented levels of unemployment. The unemployment was not due to the normal functioning of the labor market or the actions of employers. Employers should not be responsible for the cost of unemployment due to COVID-19. The request urges Congress to enact four specific provisions to provide relief.
- Provide for a transfer of federal funds to state UI trust funds equal to the amount of benefits paid due to COVID
- Extend the Title XII interest waiver through 2021
- Delay the application of the FUTA offset credit reduction for a year
- Provide short-term transfers of federal funds to state UI trust fund accounts under Section 2103 of the CARES Act (increase the 50% to 100%) specifically to reduce the charges to reimbursing employers due to the COVID-19 recession.
Action is needed by Congress to avoid the sharply increasing unemployment taxes and costs that would discourage employers from rehiring employees or creating new jobs in the recovering economy.
>> View Employer Letter to Congress
