By Glenn Collins
Tuesday, August 9, 2011 | 5:08 AM
A state law that requires employers to pay interest on money the state has borrowed is about to be collected. The state has been borrowing money from the U.S. Treasury to pay unemployment benefits for almost two years and interest is due September 30.
Alabama Department of Industrial Relations Director Tom Surtees announced Monday that a letter is being sent to employers statewide informing them of a 0.07% unemployment compensation tax assessment of the employer’s 2010 taxable wages to repay interest owed to the U.S. Treasury. The letters will be mailed on August 10, with the assessment payment due September 9.
The assessment totals approximately $5.60 for each employee. Failure to pay interest due to the Treasury could cause Alabama employers to lose a FUTA credit of approximately $21 per employee.