Unemployment Flash Report

Transcription

1 Unemployment Flash Report TAX INFORMATION: UI Administration Information begins on page 4. Volume 4, Issue 11 September 8, 2014 Equifax Workforce Solutions BLOG!!! For the very latest information join us on our blog. FUTA CREDIT REDUCTION CHART: FUTA CREDIT REDUCTION CHART: We have updated information related to this area on page 3. In addition to the credit reduction a state may incur for not having repaid outstanding Title XII loans, some states may become subject to a Benefit Cost Reduction (BCR) in addition to the normal FUTA credit reduction. The BCR add-on reduction is the result of a state having an outstanding Title XII loan for five or more consecutive years. The Total Credit Reduction is the sum of the FUTA credit reduction rate and the BCR add-on credit reduction amount. Total FUTA and BCR reductions will not be known until November 10, 2014, the date required by statute. We note that this information is quite fluid at present. GA, MO, NJ and WI have repaid their federal loans as of this writing. AR and RI have indicated they intend to repay their loans by November 10. As long as no loan balance exists on that date, no credit reduction will occur for The rest of the states, except CT, have filed waivers which, if accepted by the USDOL, will not impose the BCR additional reduction for 2014 (however, the normal credit reduction will apply). New Jersey: Contribution rates For the period of July 1, 2014, through June 30, 2015, rates will be determined under Schedule E and range from 1.2% to 7.0%. The employee rate remained 0.525% for 2014, but may change for calendar year The taxable wage base continues at $31,500 for the third and fourth quarters of 2014 and will increase to $32,000 effective January 1, Tennessee: Contribution rates For the period of July 1, 2014, through June 30, 2015, rates will be determined under table 6 and range from 0.01% to 10.0%. The state reviews the Trust Fund Balance as of December 31, 2014 and the table may change for the first and second quarters, 2015 The taxable wage base continues at $9,000 for the third and fourth quarters of 2014 and the first and second quarter, Vermont: Contribution rates For the period of July 1, 2014, through June 30, 2015, rates will be determined under Schedule V and range from 1.3% to 8.4%. New employers pay 1.0% while new out-of-state employers pay as follows: 5.9% for employers involved in the construction of buildings; 7.0% for employers involved in heavy and civil construction; and 6.3% for specialty trade contractors. The taxable wage base continues at $16,000 for the third and fourth quarters of 2014 and for the year beginning January 1, Equifax and EFX are registered trademarks of Equifax, Inc. Inform>Enrich>Empower is a trademark of Equifax, Inc Equifax Workforce Solutions, a/k/a TALX Corporation, a wholly owned subsidiary of Equifax Inc., Atlanta, Georgia. All rights

2 Page 2 Title XII Advance Activities Schedule As of: September 3, 2014 For the very latest updates and breaking news, follow our blog at insight.equifax.com Equifax Lackland Rd., St. Louis, MO taxalerts@equifax.com General Commentary There are now a total of 13 jurisdictions borrowing federal funds totaling more than $13 billion as reported by the US Treasury as of this report date. State Outstanding Interest for FY2014 Advance Balance Arizona 20,217, , Arkansas 2,982, ,163, California 7,731,409, ,474, Connecticut 432,627, ,323, Delaware 10,679, ,360, Georgia 0 266, Illinois 0 27,488, Indiana 838,921, Kentucky 338,497, ,423, Missouri 0 4,694, Nevada 0 1,424, New Jersey 0 2,815, New York 1,318,494, ,114, North Carolina 606,004, ,169, Ohio 1,380,308, ,719, Pennsylvania 0 1,235, Rhode Island 52,643, ,169, South Carolina 270,490, ,832, Virgin Islands 77,001, ,843, Wisconsin 0 5,939, Totals 13,080,277, ,551,772.61

3 Page 3 FUTA Credit Reduction 2014 Potential 2014 Estimated 2014 Estimated Total State Credit Reduction BCR add-on Credit Reduction Arkansas 1.2% (2) 0.4% 1.6% BCR add-on Waiver Application Received California 1.2% (2) 1.5% 2.7% X Connecticut 1.2% (2) 0.5% 1.7% Delaware 0.9% (1) 0.9% Georgia 1.2% (2) 0.6% 1.8% Indiana 1.5% (2) 1.2% 2.7% X Kentucky 1.2% (2) 1.0% 2.2% X Missouri 1.2% (2) 0.4% 1.6% X New Jersey 1.2% (2) 0.0% 1.2% New York 1.2% (2) 0.7% 1.9% X North Carolina 1.2% (2) 0.6% 1.8% X Ohio 1.2% (2) 1.4% 2.6% X Rhode Island 1.2% (2) 1.0% 2.2% X Avoidance Application Received South Carolina 1.5% (2) 0.5% 2.0% X X Virgin Islands 1.2% (2) 1.5% 2.7% X Wisconsin( 3) 1.2% (2) 0.2% 1.4% X (1) This state is also potentially subject to the 2.7 additional credit reduction formula. This add-on is applicable in states following their third or fourth consecutive January 1 with an outstanding Federal advance. A description is found in FUTA section 3302 (c)(2)(b) (2) This state is also potentially subject to the Benefit Cost Rate (BCR) additional credit reduction formula. This add-on is applicable in states following their fifth consecutive January 1 with an outstanding Federal advance. A description is found in FUTA section 3302 (c)(2)(c) (3) Wisconsin has currently paid off their Title XII loan as a result their FUTA credit will revert back to 0.60% unless they take out another loan prior to the November 10th deadline. Information provided by USDOL Website

4 Page 4 UI ADMINISTRATION INFORMATION: Florida The Bureau of Reemployment Assistance (unemployment agency) has advised us that all outstanding benefit charge statements through Q2/2014 will be mailed the week of September 8, Due to problems associated with the agency s launch of their new system CONNECT there have been delays and inconsistencies in the delivery of benefit charge statements for Q4/2013 and Q1/2014. We have been in contact with agency leadership about the delays over the past several months. The agency made a decision not to issue Q2/2014 charges until the problems were resolved and all statements for the three quarters could be mailed. Clients using Insights Reporting to access your charge data for various analyses should soon have access to complete information. Hawaii As of August 17, 2014, the Department of Labor & Industrial Relations, Unemployment Insurance Division (UI), has eliminated paper Weekly Report of Low Earnings forms, UC-BP-52a. In the past, employers completed the low earnings form for their employees working less than fulltime hours. The agency will no longer be mailing paper; employers must now complete the form via Hawaii s ELERM (Electronic Low Earnings Reporting and Monitoring) online system. The unemployment agency has recently been mailing letters to employers who file low earnings reports, but have not yet registered for online reporting through ELERM. The letter explains how to register and provides other important information about low earnings reporting. Please refer to page 6 for a copy of the letter. In a Flash Report issued in February, we reported that the Department of Labor & Industrial Relations, Unemployment Insurance Division, launched its ELERM system, thereby changing the method in which employers, who are unable to provide full-time work to a regular employee, must report earnings, so the UI agency may determine proper partial benefit payments. ELERM is a secure, web-based system. It requires an employer to register online in order to use it. Please go to page 7 to see the ELERM registration instructions that were issued to employers by the UI agency this past February. Any questions or assistance needed regarding ELERM may be directed to the agency at (808) or any local claims office listed at: Special Note: An employer who completes registration has access to the ELERM system, as well as the ESARO (Employment Security Appeals Referee s Office) online system. Although ESARO allows employers to perform a number of appeals related tasks, please do not engage in any actions other than viewing. Anything other than viewing could alter Equifax Workforce Solutions as the agent address of record, meaning time-sensitive documents could be misdirected or altogether missed. Any appeals-related questions should be directed to your Equifax Workforce Solutions unemployment claims representative.

5 Page 5 UI ADMINISTRATION INFORMATION: New Jersey UI/TDI weekly benefit amounts - For 2015, the maximum UI weekly benefit amount is $646 and the maximum TDI weekly benefit amount is $604. The alternative earnings test amount for both UI and TDI is $8,300. The base week amount is $165. North Carolina In keeping with UI Integrity law provisions, the Division of Employment Security has begun issuing their first formal notifications for any employer who has established a pattern of insufficient response and, therefore, becomes subject to prohibition of charge relief. The Determination of Pattern of Unsatisfactory Responses to the Request for Separation Information from Employer (NCUI 500AB) or Equivalent provides complete information about the UI Integrity laws and definitions, as well as the inadequate response details. Please go to page(s) 8-9 for an example of the new pattern determination. We have raised issues with the unemployment agency leadership regarding the new notice; the fact that it doesn t contain any appeal rights, for example. It is currently unknown, if the Determination of Pattern will be revised to include some type of formal procedures for a review process, but in the interim, the agency has agreed to an informal review of the determination findings and to correct any errors. UI Integrity enforcement by state UI agencies is still relatively new, so we will continue to protect the interests of our clients as they work through how to best educate employers and administer the law provisions. Unemployment Weekly Claims: In the week ending August 16, the advance figure for seasonally adjusted initial claims was 298,000, a decrease of 14,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 311,000 to 312,000. The 4-week moving average was 300,750, an increase of 4,750 from the previous week's revised average. The previous week's average was revised up by 250 from 295,750 to 296,000

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