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H0070..........................................by COMMERCE AND HUMAN RESOURCES
UNEMPLOYMENT INSURANCE TAX - Amends existing law to provide that the taxable
wage base for calculating the unemployment insurance tax for calendar years
2003 and 2004 shall be the taxable wage base in effect for calendar year 2002;
and to provide that the taxable wage rate in Schedule II shall be effective
for calendar years 2003 and 2004.
01/10 House intro - 1st rdg - to printing
01/13 Rpt prt - to Com/HuRes
01/14 Rpt out - rec d/p - to 2nd rdg
01/15 2nd rdg - to 3rd rdg
01/16 3rd rdg - PASSED - 67-3-0
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones,
Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
McKague, Meyer, Miller, Moyle, Nielsen, Raybould, Ridinger, Ring, Ringo,
Roberts, Robison, Rydalch, Sali, Sayler, Schaefer(Schumacher), Shepherd,
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- Bieter, Mitchell, Naccarato
Absent and excused -- None
Floor Sponsors - McKague & Trail
Title apvd - to Senate
01/17 Senate intro - 1st rdg - to Com/HuRes
01/23 Rpt out - rec d/p - to 2nd rdg
01/24 2nd rdg - to 3rd rdg
01/27 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde,
Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen, Stegner,
Stennett, Sweet, Werk
NAYS -- None
Absent and excused -- Richardson, Williams
Floor Sponsors - Goedde & Cameron
Title apvd - to House
01/27 To enrol
01/28 Rpt enrol - Sp signed
01/29 Pres signed - to Governor
02/04 Governor signed
Session Law Chapter 2
Effective: 01/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 70
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1350, IDAHO CODE,
3 TO PROVIDE THAT THE TAXABLE WAGE BASE FOR CALENDAR YEARS 2003 AND 2004
4 SHALL BE THE TAXABLE WAGE BASE IN EFFECT FOR CALENDAR YEAR 2002 AND TO
5 PROVIDE THAT TAXABLE WAGE RATE SCHEDULE II SHALL BE EFFECTIVE FOR CALENDAR
6 YEARS 2003 AND 2004; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE
7 APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 72-1350, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 72-1350. TAXABLE WAGE BASE AND TAXABLE WAGE RATES. (1) All remuneration
12 for personal services as defined in section 72-1328, Idaho Code, equal to the
13 average annual wage in covered employment for the penultimate calendar year,
14 rounded to the nearest multiple of one hundred dollars ($100), or the amount
15 of taxable wage base specified in the federal unemployment tax act, whichever
16 is higher, shall be the taxable wage base for purposes of this chapter. Pro-
17 vided however, and notwithstanding any other provision of the employment secu-
18 rity law to the contrary, for calendar years 2003 and 2004 the taxable wage
19 base shall be twenty-seven thousand six hundred dollars ($27,600), which was
20 the taxable wage base in effect for calendar year 2002.
21 (2) All covered employers, except those eligible and electing the cost
22 reimbursement payment method, shall be assigned taxable wage rates annually by
23 the director in accordance with the following, provided however, and notwith-
24 standing any other provision of the employment security law to the contrary,
25 for calendar years 20023 and 2004 the taxable wage rates for all covered
26 experience-rated employers shall be determined in accordance with schedule II.
27 (3) A desired employment security fund size shall be determined for each
28 calendar year by calculating from the penultimate year, the ten (10) year
29 average of annual benefits paid to wages covered, multiplied by one and one-
30 half (1.5). The resulting ratio, when applied to the covered wages of the
31 penultimate year, represents the desired fund size. This calculation is here-
32 after referred to as the average cost multiple (ACM).
33 (4) The ACM shall be the ratio at the top of taxable wage rate schedule V
34 as provided in subsection (7) of this section, and all other ratios for sched-
35 ules I through IX are adjusted up or down from schedule V in equal increments
36 of .005.
37 (5) The taxable wage rate schedule for each calendar year shall be deter-
38 mined by comparing the ratio of the actual balance of the employment security
39 fund, section 72-1346, Idaho Code, and the reserve fund, section 72-1347A,
40 Idaho Code, on September 30, to the wages covered in the penultimate year
41 against the taxable wage schedule ratios as provided in subsection (4) of this
42 section.
43 (6) The ratios computed for each taxable wage rate schedule as provided
2
1 in subsection (4) of this section shall be placed with their appropriate
2 schedule at the top of the columns as provided in subsection (7) of this sec-
3 tion, and shall represent the minimum fund level required for the specific
4 schedule to be in effect.
3
4
1 (8) Each employer will be assigned a taxable wage rate from the effective
2 taxable wage rate schedule for eligible, standard-rated and deficit employers,
3 based upon the employer's experience as determined under the provisions of
4 sections 72-1319, 72-1319A, 72-1319B and 72-1351, Idaho Code.
5 (a) Deficit employers who have been assigned a taxable wage rate from
6 rate class six will be assigned contribution rates equal to their taxable
7 wage rate.
8 (b) All other eligible, standard-rated and deficit employers will be
9 assigned contribution rates equal to ninety-seven percent (97%) of their
10 taxable wage rate. Provided however, that for each calendar year a
11 reserve tax is imposed pursuant to section 72-1347A, Idaho Code, the con-
12 tribution rates for employers assigned contribution rates pursuant to this
13 paragraph shall be eighty percent (80%) of their taxable wage rate.
14 (9) Each employer shall be notified of his taxable wage rate as deter-
15 mined for any calendar year pursuant to this section and section 72-1351,
16 Idaho Code. Such determination shall become conclusive and binding upon the
17 employer, unless within fourteen (14) days after delivery or mailing of the
18 notice thereof to his last known address, the employer files an application
19 for redetermination, setting forth his reasons therefor. Reconsideration shall
20 be limited to transactions occurring subsequent to any previous determination
21 which has become final. The employer shall be promptly notified of the rede-
22 termination, which shall become final unless an appeal is filed within four-
23 teen (14) days after delivery or mailing of notice to his last known address.
24 Proceedings on the appeal shall be in accordance with the provisions of sec-
25 tion 72-1361, Idaho Code.
26 SECTION 2. An emergency existing therefor, which emergency is hereby
27 declared to exist, this act shall be in full force and effect on and after its
28 passage and approval, and retroactively to January 1, 2003.
STATEMENT OF PURPOSE
RS12431
This bill will freeze the unemployment insurance
taxable wage rates at schedule II for calendar years
2003 and 2004. If this bill is not enacted, rate
schedule IV will be effective in calendar year 2003
and it is projected that rate schedule V will be
effective in calendar year 2004. The bill also
freezes the taxable wage base for calendar years 2003
and 2004 at $27,600, the taxable wage base in effect
for calendar year 2002.
FISCAL IMPACT
There is no impact on the State General Fund.
CONTACT
Name: Dwight Johnson
Agency: Labor, Dept. of
Phone: 332-3570 x 3209
Statement of Purpose/Fiscal Impact H 70