$300M transferred to state’s unemployment insurance trust fund from coronavirus relief funds

JEFFERSON CITY, Mo. (KFVS) - About $300 million in federal Coronavirus Relief Funds was transferred from the State Treasury into state’s UTI Trust Fund.

According to Governor Mike Parson’s office, this will help keep the Trust Fund balance above the level that would trigger an increase in contribution tax rates for Missouri businesses.

“With over 96 percent of Missouri’s businesses employing 50 or fewer employees, these additional funds will help prevent tax increases for our small businesses and strengthen the UI Trust Fund,” Governor Parson said. “Despite the unprecedented rise in unemployment caused by COVID-19 this past year, our economy continues to come back strong as businesses reopen and Missourians get back to work. We have come a long way since the early days of this pandemic, and an increase in taxes is the last thing Missouri employers need as we continue our recovery.”

Missouri employers fund the state’s Unemployment Insurance Trust Fund from which state unemployment benefits are provided to eligible workers who have lost their jobs.

With thousands of Missourians unemployed during the pandemic, the office said Missouri businesses would have likely seen an increase in their unemployment taxes to replenish the trust fund.

As of February 2021, Missouri’s unemployment rate stands at 4.2 percent, below the national average of 6.2 percent.