HB 1718 Summary

• Authorizes the Mississippi Level Payment Plan (MLPP) allowing eligible employers to spread employment tax payments evenly throughout the year with quarterly payments due May 15, August 15, November 15, and January 31.

• Increases taxable wage base from $7,000 to $14,000 per employee effective January 1, 2011, and reduces newly subject employer tax rates to 1% for first year, 1.1% for second year, and 1.2% for third year (previously 2.4%).

• Establishes minimum unemployment tax rate of 0.2% for years after 2010 and revises the Size of Fund Index (SOFI) to base rate calculations on insured unemployment rates rather than fund balance ratios.

• Reduces workforce enhancement training contribution to 0.15% after December 31, 2010, and suspends it when insured unemployment exceeds 5.5% average.

• Requires state agencies and political subdivisions delinquent in unemployment compensation payments to have payments due to them from other state agencies intercepted to satisfy the delinquency.