Special Message to Employers:
Information on Special Assessment for Interest
Like many other states, Wisconsin’s Unemployment Insurance (UI) Reserve Fund had to rely on federal loans to help fund unemployment benefits paid to record numbers of claimants during and following the deep national recession of 2007-09.
The federal government began charging states interest on these loans in 2011. Wisconsin made payments in 2011 and 2012 with funds collected through a Special Asssessment for Interest (SAFI) on employers.
No SAFI for 2013 and 2014
The recently signed 2013-15 budget included a provision which allocated $30 million of state general purpose revenues to pay interest due on UI Trust Fund loans from the federal government during the 2013-15 biennium.
This means employers will not be assessed for interest due the federal government on Wisconsin’s outstanding unemployment loans.
The interest due September 30, 2013, which is expected to be approximately $19 million, will be paid using these state funds. The $7 million estimated interest due in September of 2014, will also be paid using these funds.
Without this provision, a typical employer with 100 employees would have been assessed an estimated $1,040 this year and $378 next year.