The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
SB 54 Original 2020 Second Extraordinary Session Cortez
Present law provides for unemployment compensation as a joint federal-state program financed by
federal payroll taxes under the Federal Unemployment Tax Act (FUTA) and by state payroll taxes
under a State Unemployment Tax Acts (SUTA). Provides that revenues collected through
Louisiana's SUTA are deposited into an account for Louisiana within the federal Unemployment
Trust Fund. The account is referenced in present law as the state's unemployment trust fund and is
dedicated to the payment of unemployment benefits for Louisiana's unemployed workers.
Present law provides a chart that uses four different trust fund balance ranges to determine:
(1)The maximum dollar amount of wages (or "taxable wage base") paid to an employee upon
which their Louisiana employer will be liable for SUTA taxes.
(2)The maximum weekly benefit amount a qualified unemployed worker may receive in
unemployment benefits.
(3)The formula for calculating unemployment benefits for a qualified unemployed worker.
Present law provides for the applicable balance range to be determined and the corresponding taxable
wage base, maximum weekly benefit amount, and benefit calculation formula to apply for a calendar
year. Requires that each September, the Revenue Estimating Conference meet to adopt its official
projection of the state's unemployment trust fund balance for September 1st of the next calendar year
and report such to the secretary of the Louisiana Workforce Commission. Present law then requires
the secretary of the Louisiana Workforce Commission to annually set the applicable balance range
to be used for the following calendar year by applying to the chart in present law the lower amount
of: (1) the actual balance in Louisiana Unemployment Trust Fund account on September 1st; and (2)
the amount of the balance in Louisiana Unemployment Trust Fund projected by the Revenue
Estimating Conference for the following September 1st.
Proposed law authorizes the Revenue Estimating Conference to meet at times other than in
September to review the balance in the state's unemployment trust fund and to adopt or revise its
official balance projection.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 23:1474(H))