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The U.S. Government Accountability Office says states reported around $55.8 billion in overpayments of unemployment insurance benefits during the pandemic — $5.3 billion of which were fraudulent ...
Unemployment reached nearly 29%, which at the time was the highest in the state of Tennessee, and the second highest in the United States. [121] The high unemployment rate was due to the closure of a major automotive parts plant that employed a significant portion of the county's residents. [121]
Unemployment insurance is funded by both federal and state payroll taxes. In most states, employers pay state and federal unemployment taxes if: (1) they paid wages to employees totaling $1,500 or more in any quarter of a calendar year, or (2) they had at least one employee during any day of a week for 20 or more weeks in a calendar year, regardless of whether those weeks were consecutive.
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