Delaware Business Blog

Temporary emergency employer assessment lifted in Delaware

Employers in Delaware can breathe a sigh of relief!
If you haven’t already, you should be receiving the below letter from the Delaware Department of Labor and the Delaware Division of Unemployment Insurance soon…

IMPORTANT UPDATE: BUDGET SOLUTION MEANS NO “TEMPORARY EMERGENCY EMPLOYER ASSESSMENT” IN CY 2011

Dear Employer:

In March of this year, you were mailed a letter by the Division of Unemployment Insurance
informing you that a temporary emergency employer assessment would be imposed this
summer. Delaware’s Unemployment Insurance Trust Fund is currently operating at a deficit and
is supported by a loan from the federal government. To pay the accrued interest on that loan,
Delaware law required that a temporary assessment be imposed on Delaware employers.
Employers would have been required to pay that special assessment on or before September 30,
2011.

We are pleased to inform you that the Delaware General Assembly, at the suggestion of
Governor Markell and with the support of the Department of Labor, has committed to pay the
accrued interest on the Unemployment Insurance Trust Fund. Specifically, the State’s fiscal year
2012 budget includes $3.7 million to pay the accrued interest due to the federal government that
would otherwise have been paid by an assessment on Delaware employers.

As a result of these actions by the General Assembly and Governor Markell, Delaware
employers will not face a temporary emergency assessment in 2011.

On behalf of the Governor and the Department of Labor, thank you for your continued
commitment to the Delaware Unemployment Insurance Trust Fund and for your efforts to
support the unemployed and put Delawareans back to work.

Sincerely,

John J. McMahon, Jr.
Secretary, Department of Labor

W. Thomas MacPherson
Director, Division of Unemployment Insurance

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