Oregon needs to make sure the UI Trust Fund has enough reserves to pay UI benefits if the recovery from the current recession is slow. Delaying a self-balancing increase to the tax schedule or to employer tax rates within a schedule, even for just one year, would:
- Increase the risk of the UI Trust Fund going insolvent
- Increase the risk of higher Federal Unemployment Tax Act (FUTA) federal payroll taxes.
This could lead to a higher tax schedule in future years. The primary reason Oregon’s UI Trust Fund remains healthy year after year is we don’t get behind in funding it and we stick to the well-designed, statutory self-balancing formula.