HB1405 Summary

• Reduces the taxable wage base for unemployment insurance from $12,000 to $10,000 per calendar year beginning after December 31, 2017, for purposes of unemployment tax calculations.

• Decreases the maximum potential unemployment benefits from 20 times the weekly benefit amount to 16 times the weekly benefit amount for initial claims filed on or after January 1, 2018.

• Changes separation payment treatment for claims made on or after January 1, 2018, making them disqualifying for a number of weeks equal to the weeks of wages represented in the separation payment, rather than the previous 8-week threshold.

• Requires employers to specify the total amount and number of weeks of wages represented in separation payments; if not specified, the Department of Workforce Services allocates using the claimant's average weekly wage.

• Establishes legislative findings that these changes aim to stabilize the Unemployment Compensation Fund and improve Arkansas employers' competitiveness relative to surrounding states.