May Impact UI Trust Funds

On January 19, 2024, the US DOL released guidance with state requirements with respect to reporting and reconciliation of federal reimbursements for payments for the unemployment compensation waiting week. See Instructions for Reconciling Funds Made Available to States Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act – Section 2105 ( CARES Act and the Families First Coronavirus Response Act provided for the waiver of state laws requiring a non-compensable first week and federal reimbursement of the week during the period related to the COVID-19 pandemic. The accounting for these payments, reporting, and federal reimbursement presented significant programming and reporting issues for states on short notice. USDOL is requiring that states provide reconciled reports by June 30, 2024.

The reconciliation by June 30, 2024, may impact the balances in state UI trust funds prior to the annual computation dates and impact employer contribution rates for 2025.

UWC is following the impact of this reconciliation.