Parson Announces CARES Funding Transfer To Unemployment Insurance Fund

Missouri Governor Mike Parson has announced the transfer of $300 million dollars in federal coronavirus money to the state Unemployment Insurance Trust Fund so that Missouri businesses will not be required to pay higher unemployment taxes that would be triggered if the average trust fund balance dips too low.

Missouri employers wholly fund the state’s Unemployment Insurance (UI) Trust Fund from which state unemployment benefits are provided to eligible workers who have lost their jobs. The Governor says with thousands of Missourians unemployed during the pandemic, Missouri businesses would have likely seen an increase in their unemployment taxes to replenish the Trust Fund, without this action.

Missouri’s February unemployment rate was reported at 4.2 percent, 2 points behind the national average. Missouri ranked twelfth lowest in the nation in unemployment in January 2021. The February rankings are not yet available.

The Governor used an executive order to prevent increases in unemployment tax rates last year that would have otherwise been triggered by a lower level of the UI fund.