Recently it was announced that the debt North Carolina owed to the federal government to pay unemployment benefits had dropped from nearly $2.6 billion to $980 million. Now, the Division of Employment Security says they are hoping to pay that debt off early, perhaps as soon as August 2015. Initially it was estimated the debt would be paid off by November 2015.
“The quicker this debt is paid off, the quicker we can lower the taxes and level the playing field for North Carolina employers,” said Department of Commerce Assistant Secretary of Employment Security Dale Folwell.
Since 2011, North Carolina has had to pay interest on this debt. With a projected interest payment of $37 million on September 30 of this year, North Carolina’s employers will have paid nearly $262 million in interest payments alone over the past four years.