Joint Budget Committee. For purposes of complying with
requirements of the Federal Unemployment Tax Act, the bill reduces employer premium rates by 10% across all rates in the standard premium rate schedule. Additionally, the bill creates a schedule for the support surcharge rate (schedule), which is used to establish contributions to the employment support fund, to the employment and training technology fund, and to the benefit recovery fund. The new schedule uses the same methodology as is used in calculating an employer's percent of excess, which is the percentage resulting from the calculation of an employer's excess of premiums paid over benefits charged, divided by the average chargeable payroll.
The bill changes the cap on the amount of money in the
employment support fund at the end of any state fiscal year, from an amount calculated based on a portion of the employer premium plus $17 million, to a total of $32.5 million for the next state fiscal year, which amount is adjusted annually based on changes in average weekly earnings.
The bill expands the authorized use of money in the Title XII
repayment fund to allow the division of unemployment insurance (division) in the department of labor and employment (department) to use the money for costs associated with bonds or notes issued by the division, including interest on the bonds or notes.
The bill eliminates the requirement for employers to submit
premium reports to the division and instead requires employers to submit wage reports.
The bill adjusts the appropriations in the annual general
appropriation act for the 2023-24 state fiscal year to the department for use by the division as follows:
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Decreases the general fund appropriation for program costs related to labor standards by $899,537; and
•
Increases the cash funds appropriation from the employment support fund for program costs related to labor standards by $899,537.
