Arkansas Department of Workforce Services - Review of Unemployment Insurance
Exhibit I
Exhibit II
Arkansas Department of Workforce Services
Arkansas Department of Workforce Services
Local Offices
Unemployment Insurance Claims
As of December 31, 2011
Fiscal Years 2006 through 2011
.
.
.
Rogers
Mtn. Home
Number of Weekly Claims Filed
.
.
Harrison
.
.
Fayetteville
.
Paragould
Walnut Ridge
Blytheville
.
3,000,000
Jonesboro
.
Batesville
Newport
.
.
.
.
Russellville
W. Memphis
Ft. Smith
.
.
Searcy
Forest City
Conway
.
.
2,000,000
Jacksonville
.
. .
Little Rock
.
Helena/
Benton
Hot Springs
. .
Mena
W. Helena
.
Malvern
Pine Bluff
Arkadelphia
.
1,000,000
Hope
.
.
.
Monticello
Camden
Texarkana
.
.
Magnolia
El Dorado
0
Source: Arkansas Department of Workforce Services
2006 2007 2008 2009 2010 2011
to the recent national economic recession,
total claims for benefits have increased
$1,200,000,000
Amount of Benefits Paid
significantly over the last five years. Exhibit
II illustrates the number of claims filed and
$1,000,000,000
the amount of benefits paid during fiscal
years 2006 through 2011.
$800,000,000
Unemployment
insurance
benefits
are
funded by taxes collected from employers.
$600,000,000
DWS collects unemployment insurance from
two types of taxpayers:
reimbursing and
contributing.
Reimbursing taxpayers are
$400,000,000
governmental entities (i.e., federal, state, and
local), political subdivisions (i.e., K-12 school
$200,000,000
districts), and Internal Revenue Code 501(c)
(3) non-profit organizations. These taxpay-
$-
ers report wages paid to employees but,
instead of paying tax on the wages,
reimburse DWS for any benefits paid on their
behalf. These entities, in effect, self-insure
Source: Arkansas Department of Workforce Services
their risk for unemployment claims.
(unaudited by the Division of Legislative Audit)
All
remaining
entities
are
considered
contributing taxpayers. These taxpayers re-
employee in each calendar year.
If state
port wages paid quarterly and pay the
payments are made timely, employers pay a
Arkansas unemployment contribution rate on
lower federal unemployment tax rate. The
the first $12,000 (increased from $10,000 on
contribution rate varies by employer and is
January 1, 2010) of wages paid to each
detailed later in the report.
2