Federal Loan Interest Payments and FUTA Tax Credit Reductions

The Social Security Act (SSA) requires states to make full unemployment benefit payments when due in order for the United States Secretary of Labor to certify the state’s Unemployment Insurance (UI) Program.

The SSA also allows states to borrow money from the federal account to make its required payments for unemployment benefits. Employers in states that are in conformity with the SSA are allowed federal tax credits. The credit may be as much as 5.4 percent of Federal Unemployment Tax Act (FUTA) taxable wages. If Missouri did not borrow money to fund its unemployment benefit payments and maintain compliance with the SSA, employer tax credits would have been at risk. Failure to borrow federal funds could have been costly to employers.

Missouri’s outstanding federal loan balance as of October 1, 2013, is $322,320,858.70.

The Division of Employment Security made a $220 million payment on the federal loan in May 2013, saving employers $2.1 million in interest for 2013.

Because Missouri did not completely repay the outstanding loan by November 10, 2013, employers are subject to a FUTA credit reduction of 0.9 percent for calendar year 2013.

For more information, call 573-751-1995.

Save Time and Money - Respond to Claim Notices with SIDES

The State Information Data Exchange System (SIDES) E-Response website allows you to easily respond to UI information requests in a timely manner. By using SIDES E-Response, you can reduce follow-up phone calls and paper work, and streamline your UI response processes while saving time and money. SIDES also speeds up response times so you can help make sure those who deserve unemployment benefits receive them and those who do not are removed from your account.

Before logging into SIDES E-Response, you will need the following credentials:

  • Federal Employer Identification Number (FEIN)
  • 14-digit Employer Account Number (listed on the claim notice mailed when a claim is filed)
  • Personal Identification Number (PIN)/Access Code (listed on the claim notice mailed when a
    claim is filed)

Login to SIDES at: http://uisides.org.

For more information, visit the SIDES page.

Sign Up to Receive Labor News and Updates!

The Missouri Department of Labor offers updates on several topics. To sign up and receive updates on the topics that interest you, visit www.labor.mo.gov/govdelivery.

Topics include:

  • Unemployment Tax Information
  • Unemployment Insurance Benefits
  • Employer News
  • Workers' Compensation

And many more!

File Reports Online with USTAR

The Unemployment State Tax Automated Reporting (USTAR) System is an online reporting tool designed to make filing your quarterly reports safe, convenient, and trouble-free.

Benefits of filing online with USTAR:

  • Availabe 24 hours a day, 7 days a week
  • Information is secure
  • Worker information is entered automatically - just enter the wages
  • Totals and amounts due are calculated for you
  • Multiple payment options are available

Login to USTAR.

For more information, view the USTAR publication, e-mail mo-ustar.helpdesk@labor.mo.gov, or call 573-751-1995.

The USTAR help desk is available Monday through Friday, 8 a.m. to 5 p.m. CST.

Employer Quarterly Newsletter Archive