Louisiana’s unemployment trust fund has reached its highest level since 2009. Currently, the balance is $1.07 Billion. The trust fund not only pays for unemployment benefits, but also the Incumbent Worker Training Program (IWTP) that helps employers train their existing workers. Since July 1, 2018, almost $20 million in IWTP contracts has trained over 53,000 workers, created 1,587 jobs and contributed to a 5.9% wage increase for employees that participated.
According to the United States Department of Labor, Louisiana’s UI trust fund reserve ratio is 1.3, meaning the state could continue paying unemployment benefits for 15 months with no additional contributions.
There are several things that have contributed to Louisiana’s trust fund growth such as:
– Beginning in 2014, Louisiana was the first state requiring employers to electronically file their wage and tax reports. This allowed improved reporting compliance as well as more accurate calculations of taxes due.
– LWC provides a means for employers to pay their unemployment taxes electronically, creating administrative cost savings and faster receipt of funds due. Currently, 98 percent of employers pay their unemployment taxes electronically.
– The agency is an active partner on the state’s GAME ON task force to combat worker misclassification, an unethical business practice used to prevent paying unemployment taxes and other wage-related taxes and employee benefits. The LWC ranks near the top in the country in the number of misclassifications found per employer audit.