Over the past several years, the Great Recession has placed many states in a tough financial spot. Due to high jobless rates, many unemployment insurance trust funds across the country were rapidly depleted. To compensate, states turned to the federal government for assistance – and since that time, repayments have slowly been made, thanks in part to higher tax rates for local employers.

However, that will no longer be the case in Missouri. According to Gov. Jay Nixon, the state no longer owes money to the federal government, with its unemployment insurance trust fund obligation now fully repaid. As a result, local businesses are expected to save as much as $186 million in federal taxes for the 2014 fiscal year. In addition to this announcement, Nixon also vetoed legislation that would have reduced employers’ trust fund payments and shortened the amount of time residents could receive unemployment benefits.

Nixon expressed concern that the bill would hamper job creation efforts in Missouri and create more problems for a state otherwise on the upswing.

“Our relentless focus on fiscal discipline and economic growth has allowed Missouri to meet its obligation early, saving Missouri employers millions in taxes,” explained Nixon in a statement. “Today, businesses are hiring, our economy is growing, and now that we’ve returned our unemployment trust fund to solvency, there is simply no need to inflict additional hardships on those Missourians who have not yet found work.”

Job growth appears across state
The recent solvency of the unemployment insurance trust fund in Missouri isn’t the only good news for the state’s many employers. In fact, job growth has been strong and the local jobless rate remains level.

According to the Missouri Department of Economic Development, total nonfarm payroll increased by 3,700 jobs in May. The unemployment rate for the month remained the same compared to April, at 6.6 percent. Multiple industries experienced gains for this past month, including administrative, support and waste management as well as leisure and hospitality.

Overall, these recent developments in Missouri could be a sign of lower business expenses and reduced tax rates for the state’s numerous employers. For its residents, it may soon be easier to find a viable job opportunity.

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


Contact CCC to see how we can save your organization time and money.
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(800) 207-6926

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