Governor Mike Pence says the state has completed the payoff of its unemployment insurance loan from the federal government. The Department of Workforce Development says the move avoids $327 million in taxes that businesses would have faced in January.
The state has advanced $250 million funds to the department to pay off the loan and eliminate the potential Federal Unemployment Tax Act penalty. The advance will be repaid through collections of existing state unemployment taxes.The state expects the advance, which came from state reserves, to be fully paid off by the end of fiscal 2016.
The Indiana Chamber of Commerce has applauded the move, saying "several hundred" Hoosier businesses have contacted them to express their support.