Apr 19 2011
On the Senate Calendar now sits s. 478. This bill came out of an LCI (Labor, Commerce, & Industry) subcommittee I chaired this year. After 8+ meetings & 23+ scenarios we’ll probably take it up for debate on Tuesday, 04.19.11.
This piece of legislation does several things:
-new SC businesses will begin their first year in Class 12 (as opposed to 13), then their experience will dictate their class.
-voluntary early contributions will not be considered for lower rate classes
-delinquent and new employers are not to be considered to adjust rates
-delinquent employes will pay 20’s rate
-removes the weekly call in for temporary agencies
-removes ability to receive benefits when fired for gross mis-conduct
-allows benefits to be paid if loss as result of natural disaster
-allows DEW to intercept federal taxes for delinquent payments
-increases the ability of DEW to track down delinquent payments from 5 years to 8
I expect several amendments to come forth making adjustments to the current unemployment tax structures. I initially supported scenario 15, but it was later discovered that 15 increases out debt 60 million and will indirectly increase rates for classes 1-12. 15 also leaves the trust fund empty in 2016. History shows us that we see a dip in the economy approximately every 7 years.
Classes 1-12 are employers that have collectively paid a surplus of $350 million. Classes 13-20 collectively have a deficit of over $1 billion. I will offer an amendment that spreads 30% relief across the board to all rate classes of employers and I understand there’s an additional amendment that gets us more relief.
As we consider these, I am committed to 3 things on the rate structures 1-no more borrowing, 2-no cost shifting, & 3-no carve outs.