New state unemployment insurance system

Local News
5:33 pm
Mon December 3, 2012

Expect Reduced Benefits, Higher Taxes To Pay Back Unemployment Insurance Debt

North Carolina legislative leaders will unveil a plan Wednesday to pay back a massive debt to the federal government. The state owes nearly $2.5 billion for money it borrowed during the recession to pay for unemployment insurance.

Legislators in charge of the plan to pay that back say the solution will likely include fewer benefits for the unemployed and higher taxes for some businesses.

North Carolina's unemployment insurance is fully funded by businesses. Most of them pay a tax on every employee they have, and that money goes into a giant trust fund.

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