HB 1111 – Unemployment Insurance Rates
Authored by Rep. Dan Leonard (R-Huntington)
Provides a new schedule of rates for calendar years after December 31, 2020. Provides new contribution rates for calendar years after 2020. The bill reduces the number of schedules from nine to five. It locks in rates through 2025 which currently are in Schedule E – what will become the new Schedule C. After 2025, the bill sets trigger amounts that could move the rates up or down based upon the balance of the unemployment insurance (UI) trust fund.
Chamber position: Support
The latest: The bill passed the House Employment, Labor and Pensions Committee by a vote of 12-1 and now moves to the House floor for possible second reading amendments.
Indiana Chamber action/commentary: According to the U.S. Department of Labor, Indiana’s balance for trust fund solvency should be around $1.7-$1.8 billion. At the end of the year, the balance was $856 million and there will be over $1 billion around the first of May.
The Indiana Chamber testified that throughout the summer it worked with Rep. Leonard, the Department of Workforce Development and the Indiana Manufacturers Association on this issue. We believe that this bill is about as close as possible to achieving the right balance of not taking too much out of the economy in taxes and making certain that we don’t go back to a situation where we have to borrow from the federal government. The Indiana State Building and Construction Trades Council testified that it was time to increase the UI benefit for unemployed workers, but no action was taken on that suggestion.
Resource: Mike Ripley at (317) 264-6883 or email: [email protected]