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Kentucky Governor Signs Unemployment Insurance Bill

Associated Press (04/11/12) Randy Patrick

A bill signed into law by Kentucky Gov. Steve Beshear on April 11 aims to save the state’s employers millions of dollars in higher federal unemployment insurance taxes by allowing the state to issue revenue bonds to make interest payments on $963 million in federal loans used to operate the state’s unemployment insurance program during the recession. A $21-per-employee surcharge will be imposed on employers starting in 2014 to cover the first three years of interest payments at $79 million, as well as to cover future interest on the debt. A $600 million federal tax credit for employers would have been lost if the state could not make the interest payments on the Sept. 30 due date, and the federal unemployment insurance tax paid by employers would have surged to $420 per employee from $63.