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The Indiana General Assembly passed new legislation to fix the state's bankrupt Unemployment Insurance Trust Fund.
House Enrolled Act 1379, a matter which will affect many Indiana businesses, was signed by Governor Daniels on May 13th.
Prior to the Governor's approval of the Act, Chamber Members were asked how the unemployment fund legislation would affect their business.
70 Members responded on the issue.
CLICK HERE for the survey results.
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Background info:
Before the end of the 2009 regular session, the Indiana General Assembly passed House Bill 1379, an effort to fix the state's bankrupt unemployment insurance (UI) fund which provides temporary compensation to the unemployed through taxes paid by employers.
It is estimated that the state will have incurred over $1 billion in debt owed to the federal government in order to make weekly benefit payments to jobless Hoosiers. Without a plan to shore up the fund, the unemployment system could be potentially be taken over an managed by federal government during the first quarter of next year.
The issue created much debate throughout the session - House Democrats wanting to maintain current benefit rates, and Senate Republicans suggesting the shortfall be covered by both reduced benefits as well as increased taxes on business.
The final plan that passed both houses (Click Here to read
the full version) is expected to raise about $730 million through increased taxes on business. Some provisions include:
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Raises the taxable wage base from $7000 to $9500
Employers will pay the tax on the first $9500 earned by each employee, rather than $7000
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Raises tax rate employers pay from 5.6% to 10.2% on the high end and lowers to .75% from 1.1% on the low end
Employers pay the tax rate based on how frequently they lay off and receive unemployment claims against them. Those who lay off frequently pay a higher tax rate on the taxable wage base.
Raises the tax per employee for employers paying the highest rate from $392 to $969
Reduces the tax per employee for employers paying the lowest rate from $77 to $71.25
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Slightly tightens eligibility requirements
Requires claimants to show that they are actively seeking work
Denies benefits to those fired for gross misconduct and attendance issues
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Creates the Unemployment Insurance Oversight Commission
To study the trust fund and make recommendations for long term solvency
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Makes more unemployed Hoosiers eligible for 20 weeks of federally-funded extended benefits
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The Greater Bloomington Chamber of Commerce
BETTER BUSINESS. BETTER COMMUNITY.
812-336-6381
The Chamber serves as the leading advocate for business in Greater Bloomington.
For more information on this and other business advocacy issues, contact your Advocacy Team:
President & C.E.O. Director of Advocacy Government Relations Manager
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The Greater Bloomington Chamber of Commerce | 400 West 7th St., Ste. 102 | Bloomington | IN | 47404
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