As a result of legislation signed October 28, 2020 by Governor John Bel Edwards, Louisiana’s unemployment taxable wage base will not change for 2021.
Under the measure (S.B. 55), the unemployment taxable wage base is to remain at $7,700, effective January 1, 2021. This is because Procedure 2 is to be in effect for 2021 regardless of the balance of the state’s trust fund.
Procedure 2 generally is in effect for a year when the estimated trust fund balance for September 1st of that year is at least $750 million and less than $1.15 billion. The Louisiana Workforce Commission expects the trust fund balance to be less than $750 million, which would trigger Procedure 1 and a wage base of $8,500, according to SB 55’s fiscal note.
The measure also sets a maximum weekly unemployment benefit of $247 for 2021.
As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.