HB 1430 Summary

• Reduces maximum unemployment compensation benefits for initial claims filed on or after January 1, 2024, from 16 times to 12 times the weekly benefit amount, effective for new claimants starting in 2024.

• Lowers the base employer contribution rate from 2.9% to 1.9% for calendar years beginning January 1, 2024, reducing payroll tax burden on employers.

• Imposes additional employer contribution assessments of 2% (increasing to 4% after four consecutive years) on employers with a 6% contribution rate for at least four preceding years, effective January 1, 2024.

• Modifies the definition of "wages" for unemployment insurance purposes by capping taxable wages at $7,000 annually (if unemployment insurance trust fund exceeds $600 million) or implementing a $2,000 annual increase cap, beginning January 1, 2024.

• Replaces the stabilization tax with an administrative assessment of 0.125% for July 1, 2023 through June 30, 2024, with provisions directing proceeds to the Unemployment Insurance Administration Fund and Training Trust Fund for administrative expenses and modernization.