During the recession 31 states were forced to borrow $42.5 billion from the federal government in order to cover unemployment funding. Ohio was one of those states that borrowed money and in recent years, employers were left paying it back.
To be exact, employers were expected to pay $81 per employee in the 2017 calendar year.
The Ohio Trucking Association and IWLA Ohio Chapter members were instrumental in discussions to find another solution to repay this debt. With help from Rep. Kirk Schurring (R-Ohio) and Senator Scott Oelslager (R-Ohio), the members pushed HB 390 through the legislature to have it addressed before the summer recess.
The amendment in HB 390 pays the remaining debt using nearly $225 million in unclaimed funds. A one-time surcharge of $50 per employee will be paid by employers in 2017. However that is far less than what would have been paid in 2017: An estimated $400 million from interest generated by the federal loan.
“We will save over $25,000 versus another year of penalties due to Ohio not paying back the federal government,” says Doug Sibila, CWLP, president & CEO of Peoples Services Inc., based in Canton, Ohio.
Way to go Ohio Chapter!