HB 1111 – Unemployment
Authored by Rep. Dan Leonard (R-Huntington)
Sponsored by Sen. John Ruckelshaus (R-Indianapolis)

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 also locks in rates through 2025 – currently Schedule E that 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 trust fund.

Chamber position: Support

The latest: No testimony was taken. The amendment from Sen. Phil Boots (R-Crawfordsville) got the bill in the form as listed above. Senator Karen Tallian (D-Portage) asked to offer two amendments. The first would increase the wage base by $500 (currently at $9,500 for SUTA, the state tax unemployment insurance tax). The Indiana Department of Workforce Development (DWD) believes this would generate an additional $20 million in taxes from employers. The second amendment would increase the wage base multiplier from .47 to .53. Currently, a totally unemployed, eligible claimant’s weekly benefit amount (WBA) is computed by dividing his/her total base period wages by 52. That number is then multiplied by .47 to arrive at a WBA with a maximum of $390. DWD believes that this would cost almost an additional $2 million to employers. Senator Tallian further stated that there had not been a benefit increase since 2005.

But Sen. Boots did not allow either amendment. He didn’t disagree that it may be time for a benefit increase. However, the intent currently is to try to get the trust fund balance solvent. The Chamber agreed and had communicated those sentiments to the Senate sponsor, John Ruckelshaus. Subsequently, the bill passed the committee 9-0; it now moves to the Senate floor for second reading.

Indiana Chamber action/commentary: In the Senate, we do expect there will be amendments for a benefit increase, but those amendments will not be successful. The bill is expected to pass the Senate easily. Meanwhile, Rep. Leonard has indicated that he will most likely concur when the bill returns to the House.

Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com