Gov. Pat McCrory made the announcement on Monday.

 

In 2009, the state had to begin borrowing funds from the federal government to cover unemployment insurance benefits that were among the highest in the South.  

 

“Thanks to the tough choices we made last year to modernize North Carolina’s unemployment insurance system, we are on track to pay this debt at least three years ahead of schedule,” said the governor in a statement. "We also transformed our workforce training and job placement programs under our NCWorks program. With more people working, we will pay off this debt and ease a significant tax burden on nearly every North Carolina employer.”

 

Once the debt is paid off, North Carolina employers will begin receiving their full Federal Unemployment Tax Act (FUTA) credit just like those employers in 37 other states. All of these unemployment taxes are paid by employers on behalf of their employees. 

 

“Our work isn’t done,” said Department of Commerce Assistant Secretary of Employment Security Dale Folwell in the statement. “Although we are excited about being below this billion dollar mark, the true impact will be felt once we build a $1 billion surplus, which will lower state unemployment taxes on employers.  This not only gives employers certainty about the cost of doing business in North Carolina but will help in recruiting and retaining jobs."