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Federal. The Unemployment Compensation Act of 2008 (EUC08) (PubL No 110-449) created a Second-Tier of benefits for qualified unemployed workers claiming benefits in high unemployment states. The US Department of Labor produces a trigger notice indicating which states qualify for the Second-Tier of EUC08 benefits and provides the beginning and ending dates of the Second-Tier period for each qualifying state. The trigger notice covering state eligibility for the Second-Tier of the EUC08 program can be found at: http://ows.doleta.gov/unemploy/claims_arch.asp. A new trigger notice is posted at this location each week that the program is in effect.
Beginning February 15, 2009, the following states are in a high unemployment period, resulting in their triggering "on" to the Second-Tier of the EUC08 program: Alabama, Maine, Massachusetts and New York.
Alabama. Schedule C remains in effect for 2009 and there is a 0.30% Shared Cost Assessment. Note that all experience-rated employers except employers assigned the maximum rate are required to pay a 0.06% employment security administrative (ESA) enhancement assessment this year. Rates for employers range from 0.74% to 6.40%, not including the ESA.
Alabama has amended the regulations under its Unemployment Compensation Law as follows:
Claims for partial unemployment. If a worker completes and returns a claim form to his or her employer, any employer with five or more employees must promptly file the claim for partial unemployment benefits electronically through the Internet or by any filing method approved by the Department unless a waiver is granted by the Director. Employers with five or more employees may electronically file a partial claim for their workers for as many as three consecutive weeks where the employee has no earnings but the employer does not wish to terminate him or her. If the employer desires to continue filing partial claims with no earnings beyond the three weeks, authorization must be requested by e-mail, letter or memorandum addressed to the Director. A waiver request must be submitted in writing and include the business name and address, state unemployment account number, FEIN and number of employees. It should also state the reason(s) why a method other than the prescribed method is necessary. No waiver may be granted for a period longer than one year. Employers with fewer than five employees do not need to request a waiver as they may report by nonelectronic means. Where an employer fails to electronically file a claim for partial benefits, a worker can directly file it by telephone or online. If the worker expects the employer to file a claim and the employer fails to do so, the Division will allow backdating to include weeks that ended not more than 14 days prior to the date on which such worker files the claim.
If the Director finds that the failure of any individual to register and file a claim for partial benefits within the time required was due to failure on the part of the employer to comply with any of the provisions of this rule or to coercion or intimidation, or due to failure by the Division to discharge its responsibilities, the Director may extend the period during which the claim may be filed to a date not more than one year from the ending date of any week of partial unemployment for which the individual did so fail to file. Failure to comply with this rule or statute may result in a civil penalty of $25 per violation.
No expansion UI coverage. Gov. Bob Riley of Alabama has announced he will not recommend that legislators change state law in order that the state may receive a portion of the federal stimulus funds that deal with unemployment compensation coverage. The federal stimulus provisions require states to amend their laws to expand unemployment compensation provisions to cover individuals who do not normally qualify, such as those who work part-time or who quit their job for a compelling family reason. The Governor said these provisions would result in a tax increase on all Alabama employers, and potentially their employees, when the federal stimulus funds are no longer available.
Alaska. As of January 10, 2009, Alaska has completed a mandatory 13-week "off" trigger period. Based on data reported by the Bureau of Labor Statistics on December 19, 2008, Alaska's three-month seasonally adjusted total unemployment rate was 7.1% and equals or exceeds 110 % of the corresponding rate in both prior years. This causes Alaska to be triggered "on" to an Extended Benefits (EB) period beginning January 25, 2009. The duration of benefits payable in the EB Program, and the terms and conditions on which they are payable, are governed by the Federal-State Extended Unemployment Compensation Act of 1970, as amended, and the operating instructions issued to the states by the US Department of Labor. In the case of a state beginning an EB period, the State Workforce Agency will furnish a written notice of potential entitlement to each individual who has exhausted all rights to regular benefits and is potentially eligible for EB (20 CFR 615.13(c)(1)). Individuals who believe they may be entitled to EB, or who wish to inquire about their rights under the program, should contact their State Workforce Agency. For further information, contact Scott Gibbons, US Department of Labor, Employment and Training Administration, Office of Workforce Security, 200 Constitution Ave., N.W., Frances Perkins Bldg., Room S-4231, Washington, DC 20210, telephone number (202) 693-3008 (this is not a toll-free number) or by e-mail at gibbons.scott@dol.gov. (DOL Notice, 74 Fed. Reg. 4982.)
Arizona. 2009 rates for positive-balance employers range from 0.02% to 2.01%; rates for negative-balance employers range from 2.85% to 5.40%. New employers will pay 2.00% in 2009. Note that the 0.10% Job Training Assessment tax remains in effect this year.
Arkansas. For 2009, the stabilization tax is 0.80% and there is no extended benefits tax or advance interest tax. Rates for 2009, including the stabilization tax, range from 0.90% to 10.80%. The new employer rate for 2009 is 3.70%, including the stabilization tax.
California. The 2009 disability elective coverage rate in California is 2.22%.
California has amended its regulations under the Unemployment Insurance Code as follows: Applicants must now establish their identity, legal status or authority to work by providing one or more of the documents set out in the employment verification provisions of Immigration and Nationality Act §274A (8 U.S.C. §1324a) and Title 8 of the Code of Federal Regulations, Part 274a.2.
California has amended its Unemployment Insurance Code as follows:
Motion picture industry employers. Forty-five days before it stops doing business, any employing unit operating as a motion picture payroll services company must notify the motion picture production companies and allied motion picture services companies with respect to which it has been treated as the employer of certain motion picture production workers of its intent to quit business. Prior to the law change, employers were required to give notice within 30 days of quitting business.
Extension of voluntary plan. A motion picture payroll services company may apply to the Director for approval of the extension of an existing voluntary plan or plans for the payment of disability benefits to all motion picture production workers employed by all of the affiliated entities of the motion picture payroll services company. The Director must approve the extension of the voluntary plan to all of the motion picture production workers of all of the affiliated entities if he or she finds that certain conditions have been met.
Retraining benefits. The retraining benefits program for eligible individuals receiving unemployment compensation benefits has been extended until January 1, 2015. Previously, the program was set to expire on January 1, 2010.
$25 stimulus payments. Federal legislation that was signed into law on February 17, 2009, allows for a weekly stimulus payment of $25 to be added to each week of unemployment insurance benefits paid to eligible workers in California. The payments are only available for weeks of unemployment that start on and after February 22, 2009. Note that this payment is added to a claimant's regular benefits and does not reduce the weekly benefit amount. Claimants may be potentially eligible to receive the additional payment each week if they have a regular Disaster Unemployment Assistance or federal extension based on a regular claim that began on or before December 20, 2008; submit a continued claim form for the weeks beginning February 22, 2009 or after; and meet all other eligibility criteria.
Colorado. The rules governing the Colorado Employment Security Act have been amended to adopt the following:
Employee-leasing company certifications. An employer who meets the definition of an employee-leasing company will be certified only if it completes and submits an initial and annual employee-leasing company application and work-site employer and employee list as required by regulation, submits an nonrefundable fee of $500, provides evidence of securitization of unemployment taxes, and completes and submits a quarterly report of all terminated and activated employee-leasing company contracts in the previous calendar quarter.
Employee-leasing company status. An employee-leasing company will be the only reporting unit for each covered employee for unemployment reporting purposes beginning with all wages paid on or after January 1, 2010. If an employee-leasing company does not currently have an unemployment insurance employer account, each employee-leasing company will obtain an unemployment insurance employer account number and experience rate.
Provision of bond or other security. Any deposit of money or securities will be retained by the division in an escrow account until liability is terminated, at which time it will be returned to the organization, less any deductions. The division may deduct from the money deposited by an employee-leasing company or sell the securities an employee-leasing company has so deposited to the extent necessary to satisfy any due and unpaid taxes and any applicable interest and penalties.
Qualified assurance organization. Any assurance organization seeking to be an approved, qualified assurance organization must apply to the division. The application must include evidence of securitization of unemployment taxes. Upon approval, each assurance organization will receive written notification from the division director. The approval is valid for three years unless the assurance organization fails to comply with any provision of the law. An approved assurance organization must make subsequent applications at least 90 days prior to the expiration date specified in the written approval notice.
Connecticut. There is a fund balance tax of 1.40% for 2009. Accordingly, the minimum contribution rate for Connecticut employers is 1.90% and the maximum contribution rate is 6.80%. The new employer rate for 2009 is 3.00%.
Change in Extended Benefits (EB) period. Based on data reported by the Bureau of Labor Statistics on January 27, 2009, Connecticut's three-month seasonally adjusted total unemployment rate was 6.8% and equals or exceeds 110% of the corresponding rate in both prior years. This causes Connecticut to be triggered "on" to an EB period beginning February 15, 2009.
Delaware. The maximum weekly benefit amount in Delaware for 2009 is $330. The minimum is $20.
The State Experience Factor for 2009 is 55 and a supplemental assessment rate of 0.20% applies to all basic rates. Rates for 2009 range from 0.30% to 8.20%. New nonconstruction employers pay 2.50% in 2009 and new construction employers pay rates starting at 4.70%, depending upon their NAICS classification.
District of Columbia. Table IV remains in effect in the District of Columbia for 2009. Rates under this table range from 1.30% to 4.00% for positive-balance employers and from 5.40% to 6.60% for negative-balance employers. New employers pay 2.70% in 2009. There is also a 0.20% Administrative Assessment in effect this year.
Florida. For 2009, the minimum rate is 0.12% and the maximum rate is 5.40%, except that employers participating in the short-time compensation program will be subject to a maximum rate of 6.40%. New employers pay 2.70% in 2009. The multiplier is .3438 and the final adjustment ratio is .0012. Note that the fund balance adjustment factor is not required in 2009 because the balance of the fund was greater than 3.7% of the state's taxable payroll.
Hawaii. For 2009, Rate Schedule A applies in Hawaii. New employers pay 1.70% under this schedule and rates range from 0.00% to 1.70% for positive-balance employers to 2.10% to 5.40% for negative-balance employers. Note that every employer other than an employer that has elected reimbursement financing or an employer assigned the minimum rate of zero or the maximum rate of 5.40% is also required to pay an employment and training fund assessment, which is 0.01% for 2009.
For 2009, the maximum weekly benefit amount for UI claimants is $545 and the maximum weekly benefit amount for TDI claimants is $510. For 2009, the maximum weekly TDI wage base is $877.69 and the maximum weekly TDI deduction is $4.39.
Idaho. The taxable wage base in Idaho for 2009 will be $33,200. This is an increase of $1,000 from the 2008 taxable wage base amount of $32,200. For 2009, rates for positive-balance Idaho employers will range from 0.447% to 1.491% and rates for deficit-balance employers will range from 2.685% to 5.400%. The standard rate is 1.566%. The Workforce Development Tax is in effect this year and the rate varies with each employer class. There is no Special Administration Reserve Fund tax in 2009 however. The maximum weekly benefit amount for Idaho workers will drop to 57% of the average weekly wage in 2009 (down from 59% in 2008). Therefore, the maximum weekly benefit amount will be $362 and the minimum weekly benefit amount will be $65.
Change in Extended Benefits (EB) period. Idaho's 13-week insured unemployment rate for the week ending January 24, 2009, rose to 5.1% and exceeds 120% of the corresponding average rate in the two prior years. Therefore, beginning the week of February 8, 2009, eligible unemployed workers will be able to collect up to an additional 13 weeks of UI benefits.
Illinois. For calendar year 2009, the adjusted state experience factor is 91% and the benefit conversion factor remains at 138.4%. Total rates range from 0.60% to 6.80%, including the 0.40% fund building factor in effect for 2009. An employer whose contribution rate is 5.50% or higher and whose total quarterly wages are less than $50,000 pays contributions at 5.40% in that quarter. New employers pay 3.10% for 2009, except new construction employers pay 3.40%, including the 0.40% fund building factor.
From January 4, 2009, through December 31, 2009, the maximum weekly benefit amount for an individual with no dependents is $385, the maximum for an individual with a nonworking spouse is $459, and the maximum for an individual with a dependent child or children is $534. The statewide average weekly wage on which the maximum benefit amount calculations are based is $818.32 for 2009. The minimum weekly benefit amount remains $51.
Indiana. For 2009, rates in Schedule A are in effect. These rates range from 1.10% to 4.10% for positive-balance employers and from 4.40% to 5.60% for negative-balance employers. New employers pay 2.70%. There are no additional assessments for 2009.
Iowa. Iowa contribution rates will continue to be determined under Rate Table 6 in 2009 and will range from 0.00% to 8.00%. New nonconstruction employers pay 1.00% and new construction employers pay 8.00%. The reserve fund rate is 0.00% this year.
Kansas. For 2009, Schedule III is in effect, the ratio of the fund balance to total payrolls is 1.641% and the average required yield on taxable wages is 3.10%. Eligible positive-balance employers pay rates ranging from 0.00% to 3.24%. Negative-balance employers will pay rates ranging from 5.60% to 7.40%. New employers pay 4.00%, except new construction employers pay 6.00%. Newly-rated government employers pay 0.11% in 2009.
Kentucky. For 2009, the rates listed in rate schedule E are in effect. Rates range from 1.00% to 3.50% for positive-balance employers and from 7.50% to 10.00% for negative-balance employers. The new employer rate for 2009 is 2.70%, except new construction employers will pay 10.00%.
Louisiana. For 2009, contribution rates of eligible experience-rated employers range from 0.10% to 6.20%. The rates payable by new employers in 2009 range from 1.15% to 2.67%. The 2009 rates have a 10% reduction in effect. For 2009, there also is a social charge of 11.71%, which is paid by all employers, and a 27.73% incumbent worker training charge, paid only by eligible employers.
The maximum weekly benefit amount in Louisiana for 2009 is $258 and the minimum weekly benefit amount is $10.
Maine. Contribution rates in Maine for 2009 range from 0.49% to 5.45%. New employers pay 1.62%.
Maryland. For calendar year 2009, rates are determined under Table B and range from 0.60% to 9.00%. New employers pay 2.20% for 2009, except that new construction employers headquartered in another state pay 4.50%.
Massachusetts. Schedule E is in effect in Massachusetts for calendar year 2009. Rates for positive-balance employers under this schedule range from 1.26% to 6.14% and rates for negative-balance employers range from 7.24% to 12.27%. The solvency assessment rate is 1.10% for 2009. New nonconstruction employers pay 2.83% and new construction employers pay 6.99% in 2009. The Workforce Training Fund contribution remains at 0.06% of taxable wages.
Massachusetts has amended its rules under the Unemployment Compensation Law as follows: If a combined wage claim is denied, the Division of Unemployment Assistance will inform the claimant of the option to file in another state in which the claimant has wages and employment during the state's base period(s).
Missouri. For 2009, the contribution rate of an experience-rated employer can range from 0.00% to 9.75%. For experience-rated employers that are participating in the workshare program, contribution rates can range from 0.00% to 13.65%. These rates reflect all surcharges imposed for 2009. The rate payable by new employers in 2009 is 3.51% except for those employers in special industries. New construction employers will pay 3.539% and new mining employers will pay 3.51% in 2009. Note, however, the nonprofit contribution rate remains at 1.30% for 2009.
The rules governing the Missouri Employment Security Law have been amended to adopt the following: For purposes of calculating the amount of the annual unemployment automation surcharge, a cut-off date is established as the period ending with the date on which contribution and wage reports and contributions for the second calendar quarter of any year are delinquent.
An employing unit not previously subject to the law that becomes an employer or is determined to be an employer after the cut-off date will not be liable to pay the unemployment automation surcharge during the following calendar year. Any employer whose liability to pay contributions is established prior to the cut-off date and whose contribution rate is greater than zero will pay an annual unemployment automation surcharge based upon the employer's total taxable wages for the 12-month period ending the preceding June 30. If any employer neglects or refuses to file a contribution report for any calendar quarter during the 12-month period ending the preceding June 30, the division will make an estimate based on any information in its possession or that may come into its possession of the amount of taxable wages paid by the employer for the period with respect to which the employer failed to file the contribution and wage report. The division then will use the estimated taxable wages in calculating the amount of the unemployment automation surcharge for the following calendar year. If an employer is not liable to pay the unemployment automation surcharge during a specific calendar year, that employer's applicable contribution rate for the calendar year will not be reduced by 0.05%.
Nebraska. For 2009, the combined tax rate for employers in Categories 1 through 20 will range from 0.00% to 5.40%. The rate for nonconstruction new employers is 1.26% (Category 12). For construction new employers the rate is 5.40% (Category 20).
The maximum weekly benefit amount in effect in Nebraska for 2009 is $308.
Nevada. The taxable wage base in Nevada for 2009 will be $26,600. This is an increase of $1,200 from the 2008 taxable wage base amount of $25,400. For 2009, contribution rates in Nevada will continue to range from 0.25% to 5.40%. The overall average tax rate for 2009 is the same as 2008, 1.33%.
Change in Extended Benefits (EB) period. Nevada's 13-week insured unemployment rate (IUR) for the week endingFebruary 7, 2009, rose above 5.0% and exceeded 120% of the corresponding rate in the two prior years. Therefore, beginning the week ofFebruary 22, 2009, eligible unemployed workers will be able to collect up to an additional 13 weeks of UI benefits.
New Hampshire. Positive-rated and new employers will benefit from a 0.50% fund balance reduction, or discount, in their unemployment insurance contribution rates for the first quarter of 2009. For all remaining quarters of 2009, a 0.00% reduction is applicable. Basic rates for positive-rated employers range from a total of 0.10% to 2.70% and basic rates for negative-rated employers range from 2.70% to 6.50%, not including any applicable reductions.
New Jersey. The Governor of New Jersey is redirecting $270 million into the state's Unemployment Trust Fund in order to avoid a business tax increase that would have gone into effect on July 1, 2009. This is the second such payment ordered by the governor in recent months. In June 2008, he added $260 million to the fund to avoid triggering a business tax increase that would have approached $400 million last July.
New Jersey's potential share of the $7 billion Unemployment Insurance Modernization provisions included in the recently enacted stimulus bill is expected to be $207 million, which will also help to minimize required increases in employer wage taxes. Currently, Schedule A, the lowest rate schedule available, is in effect.
New Mexico. The maximum weekly benefit amount in New Mexico is $356 for 2009. The minimum weekly benefit amount is $67.
New York. For 2009, the rate schedule in effect is the column labeled "0% but less than 0.5%." The range of rates with the normal, subsidiary and the Reemployment Service Fund for 2009 will be 1.30% to 9.70%. New employers pay a rate of 4.10%, including the subsidiary tax rate of 0.625% and the reemployment tax of 0.075%.
North Carolina. The 2009 taxable wage base in North Carolina will be $19,300, up from $18,600 in 2008. Schedule A of the rate table will continue to apply in North Carolina for calendar year 2009; rates will range from 0.00% to 6.84%. New employers pay 1.20%.
North Dakota. For 2009, the minimum rate for positive-balance employers in North Dakota is 0.20% and the maximum rate for positive-balance employers is 1.30%. The minimum rate for negative-balance employers is 6.26% and the maximum rate for negative-balance employers is 9.86%. New positive-balance nonconstruction employers pay 1.17% in 2009 while new negative-balance nonconstruction employers pay 6.26%. All new construction employers pay 9.86%.