The unprecedented number of Louisiana residents applying for unemployment benefits amid the pandemic is quickly depleting the state’s Unemployment Insurance Trust Fund (UTF), which is primarily funded by employers through payroll tax contributions. As the fund balance dwindles, state law will activate triggers to raise the tax wage base per employee, effectively raising business taxes and putting additional economic stress on companies struggling to recover from the effects of COVID-19. As of June 16, the balance of the UTF had reduced 41% from its January levels to $618 million. BRAC addresses this issue further in its latest blog post.
