September 8, 2021
EY special report analyzes impact of COVID-19 on current and future employer unemployment insurance costs
Many states are now lifting their COVID-19 restrictions, signaling a return to normal from the pandemic; however, the lingering impact to the economy will be long felt, particularly as it relates to state unemployment insurance (SUI) trust funds. Many employers may have noticed their SUI tax rates increased in 2021 because of the significant rise in COVID-19-related benefit claims last year. Even so, SUI cost increase for employers could have been much higher if not for actions taken by some states to lower the impact in 2021. Further, many states so far have accepted federal loans to shore up their SUI trust funds, and this debt must later be repaid at a cost likely to be borne by employers.
Our special report, The impact of COVID-19 on employer unemployment insurance costs, provides a detailed analysis of federal unemployment relief for COVID-19, the impact of the pandemic on US jurisdictions and the continuing influence on employer SUI costs beyond 2021.
You can download the special report here.
EY Payroll News Flash