Unemployment Insurance bill headed to Governor for signature
A bill that will help businesses with anticipated soaring unemployment insurance (UI) rates has cleared the Hawaii State Senate today and is now headed to the Governor to be signed into law. HB2169, HD2, introduced by Rep. Karl Rhoads, will provide significant tax relief for employers while maintaining unemployment benefits for those who have been laid off through no fault of their own.
The bill sets new lower rates for the next two years. Without the legislation, unemployment rates are scheduled to increase dramatically due to the struggling economy and high state unemployment. As a result, on average, an employer would now pay, per employee, $630 instead of $1070 in the first year, and $970 instead of $1520 in the second year.
Specifically, the bill does the following:
Sets, for calendar years 2010 and 2011, the wage base at 90% of the average annual wage.
Sets, for calendar year 2010, the employer contribution rate at schedule D and for calendar year 2011, the employer contribution rate at schedule F.
Retains the maximum weekly benefit rate at 75% of the average weekly wage until December 31, 2011.
Returns the maximum weekly benefit rate to 70% of the average weekly wage on January 1, 2012.
Authorizes special assessments upon employers to pay the principal and interest costs on loans received from the U.S. Secretary of Labor provided that the director of Labor and Industrial Relations develops a fair and equitable manner in which these payments are made.
Mandates recalculation of the adequate reserve fund beginning in 2012.
The bill sets new lower rates for the next two years. Without the legislation, unemployment rates are scheduled to increase dramatically due to the struggling economy and high state unemployment. As a result, on average, an employer would now pay, per employee, $630 instead of $1070 in the first year, and $970 instead of $1520 in the second year.
Specifically, the bill does the following:
Sets, for calendar years 2010 and 2011, the wage base at 90% of the average annual wage.
Sets, for calendar year 2010, the employer contribution rate at schedule D and for calendar year 2011, the employer contribution rate at schedule F.
Retains the maximum weekly benefit rate at 75% of the average weekly wage until December 31, 2011.
Returns the maximum weekly benefit rate to 70% of the average weekly wage on January 1, 2012.
Authorizes special assessments upon employers to pay the principal and interest costs on loans received from the U.S. Secretary of Labor provided that the director of Labor and Industrial Relations develops a fair and equitable manner in which these payments are made.
Mandates recalculation of the adequate reserve fund beginning in 2012.