DELAWARE – HB 433 SIGNED BY GOVERNOR CARNEY BRINGING CHANGES TO UI
House Bill 433, recently signed by Delaware Governor John Carney, will usher in changes for Delaware employers in the coming years. The bill will most notably move Delaware from the benefit wage ratio methodology for computing unemployment tax rates to a more popular calculation methodology, the benefit ratio. This transition will not take place until 2027. In the interim, the bill helps provide temporary relief to employers by reducing new employer tax rates, simplifying tax rate schedules, reducing or steadying overall employer tax rates, and reducing the maximum earned rate.
The bill also introduced a new permanent taxable wage base, which will be phased in over three years. In 2025, the taxable wage base will be $12,500, up from $10,500 in 2024. It will subsequently increase to $14,500 in 2026, and $16,500 in 2027 and beyond.
NEW HAMPSHIRE – TAX RATES REMAIN THE SAME
Unemployment tax rates for the third quarter of 2024 will remain the same in New Hampshire. While the New Hampshire Employment Security has the ability to update the Fund Balance Reduction on a quarterly basis, because the Trust Fund has maintained a balance of at least $350 million, there will continue to be a 1.0% reduction to the rate for positive rated employers. Additionally, the Inverse Rate Surcharge (for negative rated employers), will remain 0.5%.
IOWA – UNEMPLOYMENT TAX RATES REMAIN AT LOWEST POSSIBLE LEVEL FOR 2025
In Iowa, rates will continue to pull from the lowest allowable table, Table 8, with rates ranging from 0.000% to 7.000%. New non-construction employers will be assigned a 1.000% rate, while new construction employers will be assigned a 7.000% rate.
According to the Iowa Workforce Development press release, this is the third consecutive year at the current rates – and only the third time being at this level in the last 25 years. The difference between Table 8 and Table 7 is estimated to save employers approximately $72.20 per employee (based on wages >$36,600 and paying out at the median tax rate from year-to-year).
Notice of Tax Rate documentation will be sent in November.
IOWA – DUA BENEFIT DEADLINE EXTENDED
The Iowa Workforce Development announced an extension for Disaster Unemployment Assistance (DUA) benefit application for Iowans in Scott County impacted by severe weather than began on June 16. Applications must now be submitted by October 28. This application deadline extension only applies to residents of Scott County due to its late assistance designation, which occurred after the initial filing deadline.
As a reminder, individuals must file a claim online through the Iowa Workforce Development’s Unemployment Benefits Online Application System.
WASHINGTON – NEW RULE LANGUAGE TO BE IMPLEMENTED, INCORPORATING HOUSE BILL 1106 CHANGES
The Washington Employment Security Department recently announced the finalization of new rule language made as a result of the passing of House Bill 1106 in 2023. The rulemaking clarifies that benefits may be paid if the claimant separated from their employment because the care of a child or a vulnerable adult in the claimant’s care is inaccessible. However, even though benefits may be paid, the new ruling states that the benefits in this situation will not be charged to the experience rating account of any contribution paying employer.
This rulemaking also adds that a claimant may have good cause and is not disqualified from benefits if the claimant had a regularly scheduled shift or split shift start or end time for the prior 90 calendar days, and the employer, without request by the claimant and not based on a system of seniority, changed the regularly scheduled shift or split shift start and end time by six or more hours for that shift on a non-temporary basis.
This new rule language will be effective September 15, 2024.
