August 13, 2020 2:04pm
GLI joins coalition urging action on UI taxes
GLI joined a coalition of Kentucky organizations representing for-profit and nonprofit employers to urge Governor Andy Beshear to take action to stabilize the Commonwealth’s unemployment insurance (UI) trust fund. The massive rise in unemployment brought on by the COVID-19 pandemic and business closures has depleted the state’s UI trust fund and led the Beshear administration to secure a federal loan to continue paying benefits to claimants. To return the trust fund back to health, UI taxes on employers are expected to increase dramatically in 2021. GLI has been working to raise awareness around this issue in recent weeks.
In a letter to Governor Beshear, GLI and other organizations stressed the challenges that increased UI taxes could pose for employers and Kentucky’s economic recovery. The coalition encouraged Governor Beshear to allocate a portion of Kentucky’s CARES Act funds for a much-needed infusion into the UI trust fund to help offset a large assessment on our businesses and nonprofits who are already struggling for survival, as well as address the needs of nonprofit employers who self-insure.
Read the full coalition letter here.