DE HB285

Exempts unemployment compensation benefits received in 2021 from Delaware state income tax calculations, extending the 2020 exemption so claimants do not pay state taxes on pandemic-related benefits.

Freezes 2022 unemployment insurance assessment rates for new employers and industry classifications at 2020 levels to prevent rate increases resulting from elevated COVID-19 related claims.

Reduces 2022 unemployment tax assessment rates for merit-rated employers to the lowest rate earned in 2020, 2021, or 2022, except those paying delinquency rates for failure to file reports or pay assessments.

Reduces the taxable wage base for unemployment insurance to $14,500 for 2022, estimated to decrease UI Trust Fund contributions by $11.4 million.

Extends the Secretary of Labor's authority to issue emergency unemployment insurance rules responding to COVID-19 through December 31, 2022, and authorizes administrative adjustments to correct assessment errors and address fraudulent claims.