Author: James McAllister
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Idaho governor signs bill locking a lower unemployment tax rate for two years
Idaho Governor Brad Little (R) signed House Bill 450 into law on Feb. 18, lowering Idaho’s unemployment insurance tax rate for the next two years. The state estimated the lower unemployment tax range would save Idaho employers $64 million for the duration of the tax cut. Employers pay state unemployment taxes to fund the unemployment…
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Michigan announces unemployment insurance tax forms for 2021 are available online
The Michigan Unemployment Insurance Agency announced Feb. 22, 2022, that 1099-G forms are available for anyone who received unemployment insurance benefits in 2021. Residents who claimed unemployment benefits in 2021 have to have the form to file state and federal tax returns. The form includes information on the amounts of benefits claimants received and the…
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Senators argue against private facial recognition for unemployment insurance proof of identity
U.S. Senators Ron Wyden (D-Ore), Sherrod Brown (D-Ohio), and Elizabeth Warren (D-Mass) published a letter to the U.S. labor secretary on Feb. 15 arguing against the outsourcing of facial recognition and identity verification for unemployment insurance benefits to the private sector. The Senators argued outsourcing unemployment identity verification processes potentially created privacy risks for claimants.…
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U.S. Department of Labor announces grants to help workers apply for unemployment insurance benefits
U.S. Department of Labor announced the allocation of $15 million of American Rescue Plan Act (ARPA) funds to pilot a program to help workers apply for unemployment insurance benefits. The Department will select five states for the UI Navigator pilot, each receiving $3 million. The states will use that money to partner with labor unions…
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Kentucky unemployment insurance audit identifies problems with system
Kentucky Auditor Mike Harmon’s office released a report identifying nine issues with Kentucky’s unemployment insurance program, including problems with security and the state’s auto-pay system. The report also found that the state paid over $195 million to over 28,000 out-of-state claimants between June 2020 and June 2021. Unemployment insurance refers to a joint federal and…
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Pennsylvania labor secretary reports $570 million in unemployment insurance fraud during pandemic
In testimony before the House Labor and Industry Committee on Feb. 10, 2022, Pennsylvania Secretary of Labor and Industry Jennifer Berrier estimated that the state paid $570 million of fraudulent unemployment insurance benefits from March 1, 2020, through Sept. 30, 2021. The fraudulent payments represented about 6.3% of the total unemployment insurance payments made during…
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Alabama allocates American Rescue Plan Act funds to replenish unemployment trust fund
The Alabama Legislature passed a plan for spending American Rescue Plan Act (ARPA) funds on Jan. 27, 2022, directing $79.5 million of the state’s $2.1 billion ARPA allocation to replenish the state’s unemployment trust fund. Following the bill’s passage, Alabama Department of Labor Secretary Fitzgerald Washington announced the state dropped to a lower tax schedule…
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Michigan House of Representatives approves changes to unemployment insurance benefits administration
The Michigan House of Representatives on Jan. 27 approved a package of bills proposing changes to the state’s system of unemployment insurance benefits administration. The legislation comes after an audit discovered the UIA paid at least $8.5 billion in improper benefits between March 2020 and December 2021. The package includes bills prohibiting the Michigan Unemployment…
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Iowa updates eligibility requirements for unemployment insurance program
The Iowa Department of Workforce Development issued a rule on January 10, 2022, that doubled the number of work search activities claimants have to conduct weekly from two to four. Work search activity refers to the requirement that an individual engages in documented efforts to search for work while receiving benefits through unemployment insurance. The…
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Michigan governor signs executive order establishing unemployment fraud response team
Michigan Gov. Gretchen Whitmer (D) on Dec. 29, 2021, signed Executive Order 2021-16, which established an unemployment fraud response team to recommend actions to the director of the Michigan Department of Labor and Economic Opportunity and the heads of other executive departments for reducing the number of fraudulent unemployment insurance claims the state pays. The…