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R.I. To Borrow From Federal For Unemployment Insurance Coverage

Such lines of credit bear no interest costs under the American Recovery and Reinvestment Act

Rhode Island (R.I) state Department of Labor and Training has asked for a $40 million line of credit from the Federal, to cover basic state unemployment insurance claims for the next three months – reported in projo.com.

Such lines of credit bear no interest costs under the American Recovery and Reinvestment Act (ARRA), and they are approved automatically, so recipients should not see any delay in their payments.

The tax on businesses ranges from a low of 1.9% for companies whose workers rarely make unemployment claims, to 10% for firms that lay off or fire frequently. The tax applies to the first $18,000 paid to an employee, an amount that fluctuates annually, depending on whether the fund needs replenishing.

As of Thursday, the balance of the state unemployment insurance trust fund stood at just under $15.3 million. For the week ending June 20, the department had 22,000 claims for basic unemployment, not including the extended benefits programs.