CHICAGO – The Center Square points to an important issue that no other Illinois media seems to be interested in: Illinois' nearly-empty unemployment fund.
Funds to replenish the unemployment benefits will come from business owners – and sadly, after the COVID pandemic, fewer Illinois business owners will be forced to pay more to compensate for those businesses that didn't survive.
(The Center Square) – Illinois’ Department of Employment Security said it has paid out $16 billion in unemployment benefits to more than 2 million people since the beginning of the pandemic.
That fund, already borrowing federal money that must be repaid, must eventually be replenished, but who will bear that responsibility?
Unemployment insurance is funded by taxes and employers, both at the federal and state level. The cost is the same for all states for the federal unemployment taxes. Businesses pay varying levels of state employment tax based on their number of workers, type of business, and how much the state pays out in unemployment benefits. A higher maximum unemployment benefit typically leads to a higher state unemployment contribution from businesses.