Good News from the Employment Development Department (EDD) About the Unemployment Insurance Fund


In May 2018, California’s (EDD) Unemployment Insurance (UI) Fund became solvent for the first time since the economic downturn in 2008. The UI Fund is projected to end the year with a positive balance estimated at $2.1 billion, as compared to a fund deficit of $1.1 billion at the end of 2017. The UI Fund is projected to increase to $2.6 billion by the end of 2019. If the UI Fund has a positive balance on November 10, 2018, when the U.S. Department of Labor determines final credit reductions for the year, then the federal unemployment insurance (FUI) tax credit reductions will cease. California employers will then receive the full 5.40% FUI tax credit resulting in an effective FUI rate of 0.6% (6.0% FUI tax rate less 5.40% tax credit) for calendar year 2018.

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