DE HB433

Replaces the current benefit wage ratio methodology with a new benefit ratio methodology for calculating employer unemployment assessment rates, effective January 1, 2027, making the system more responsive to economic changes and easier to administer.

Introduces a three-component assessment rate calculation for employers starting in 2027: benefit ratio assessment rate, industry assessment rate, and employer size assessment rate, plus a continuing operations and technology assessment.

Phases in a permanent taxable wage base increase over three years: $12,500 (2025), $14,500 (2026), and $16,500 (2027 and after), replacing the current $10,500 base.

Provides temporary relief to employers in 2025-2026 through reduced new employer tax rates, simplified tax rate schedules, and lower maximum earned rates before the new methodology takes effect.

Makes technical corrections and conforming changes to existing unemployment compensation code provisions to align with the new assessment rate structure.