MARYLAND – RECALCULATED TAX RATES ISSUED
Maryland recently issued guidance to employers and agents advising of recalculated employer unemployment tax rates for the 2024 calendar year. All employers will either see their tax rates remain the same or decrease as a result of this recalculation.
Only earned rate and standard rate employers are affected by this update. Similarly to 2022 and 2023, the Maryland Division of Unemployment Insurance compared two different methods of computing tax rates for the year – based on (1) pre-pandemic experience and (2) immediate past years’ experience. The state then assigned the lower of the two rates to the employer. Employers with fixed rates did not have their taxes recalculated in any way.
If an employer made a first quarter payment prior to their rate being lowered, they will receive a credit toward a future payment. A refund can also be requested.
OREGON – REMINDER FOR WORK SHARE EMPLOYEES
This week, Oregon Employment Department issued a reminder to employers that employees participating in Work Share programs should not indicate that they were temporarily laid off if they worked any amount of hours in the week.
If an employee indicates that they have been temporarily laid off by their Work Share employer for more than 4 consecutive weeks, they will be considered fully unemployed and regular unemployment rules will apply.
Temporary layoffs should only be indicated if the employee had zero hours worked and zero earnings paid. All other circumstances where they had their hours reduced for the week should not be marked as a temporary layoff.
WEST VIRGINIA – UNEMPLOYMENT BENEFITS BILL BECOMES LAW WITHOUT GOVERNOR’S SIGNATURE
West Virginia Governor Jim Justice allowed SB 841 to become law last week, neither signing nor vetoing the bill. The legislation, whose provisions will go into effect on July 1, 2024, includes several updates impacting employers and unemployment benefit recipients:
- Reduces the state taxable wage base to $9,500
- Freezes the maximum weekly benefit amount at $662 per week, instead of adjusting with inflation
- Requires individuals to complete at least four work search activities per week to receive benefits
