SC S0688

Extends the lookback period for calculating employer unemployment insurance benefit ratios from 12 calendar quarters to 16 quarters in tax year 2027 and 20 quarters beginning in tax year 2028

Replaces the "average high cost multiple" fund adequacy measure with a new "fund solvency target" formula based on labor force size, maximum weekly benefit amount, and maximum weeks of benefits available

Creates a solvency surcharge on employers when the unemployment trust fund falls below the solvency target, with rates set to restore the fund within 1-5 years depending on the shortfall percentage

Changes the penalty for employers with outstanding tax liens issued on or after January 1, 2027 from an automatic class twenty tax rate to a 2% surcharge added to their regular contribution rate

Removes the $1,000 cap on penalties for failing to file required wage/contribution reports and for unpaid contributions, leaving only a minimum penalty of $25 with no maximum limit