Hawaii House Bill HB1085

Hawaii 2024 Regular Session

• Introduced: 1/25/23
• Refer: 1/30/23

Caption

Relating To The Hawaii Employment Security Law.

Impact

The bill proposes to impose an additional unemployment insurance technology assessment at a rate of 0.01% of taxable wages. This assessment will be applied to all employers, with the exception of those who have opted for an alternative financing method for unemployment compensation benefits. The fees generated from this assessment are designed to be allocated exclusively to the newly created fund, ensuring that the state's unemployment insurance systems are adequately funded and maintained. This measure aims to enhance the efficiency of unemployment benefit processing amidst ongoing technological advancement.

Summary

House Bill 1085 aims to establish the Unemployment Insurance Technology Special Fund within the state treasury of Hawaii. The fund is intended to support the operating expenses of the Hawaii Department of Labor and Industrial Relations concerning unemployment insurance technology, particularly for managing the payment of benefits and contributions as stipulated under the Hawaii Employment Security Law. This initiative reflects a growing recognition of the need to modernize and maintain technology infrastructure that aids in effective unemployment benefits administration.

Contention

There may be some contention around the implementation of this additional assessment, particularly among employers who may view this as an added financial burden during economic recovery phases. Concerns might arise regarding the impact of this assessment on payroll costs and overall business expenses. However, supporters could argue that investing in technology infrastructure is essential for efficient service delivery in unemployment insurance, which could ultimately benefit both employers and employees by streamlining processes and reducing delays in benefit disbursement.