The original instrument was prepared by Dawn Romero Watson. The following
digest, which does not constitute a part of the legislative instrument, was prepared
by Yoursheka George.
DIGEST
SB 55 Engrossed 2020 Second Extraordinary Session Cortez
Present law provides for unemployment compensation as a joint federal-state program with
administrative expenses financed by federal payroll taxes under the Federal Unemployment Tax Act
(FUTA) and the cost of benefits financed by state payroll taxes under 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 establishes four different procedures based on trust fund balance
ranges to determine:
(1)The maximum dollar amount of wages (or "taxable wage base") paid to an employee in a
calendar year upon which the Louisiana employer will be liable for SUTA taxes.
(2)The maximum weekly benefit amount a qualified unemployed Louisiana worker may receive
in unemployment benefits.
(3)The formula for calculating unemployment benefits for a qualified unemployed worker based
upon that worker's past wages.
Present law provides that as the unemployment trust fund balance increases, employers taxes
decrease and unemployed worker benefits increase, and as the trust fund balance decreases, employer
taxes increase and unemployed worker benefits decrease. Specifically, the present law chart
provides:
(1)Procedure 1 (applicable when the unemployment trust fund balance range is less than
$750,000,000) provides that the taxable wage base shall be $8,500 and the maximum weekly
benefit amount shall be $221.
(2)Procedure 2 (applicable when the unemployment trust fund balance range is at least
$750,000,000 but less than $1,150,000,000) provides that the taxable wage base shall be
$7,700 and the maximum weekly benefit amount shall be $247.
(3)Procedure 3 (applicable when the unemployment trust fund balance range is at least
$1,150,000,000 but less than $1,400,000,000) provides that the taxable wage base shall be
$7,000 and the maximum weekly benefit amount shall be $258. (4)Procedure 4 (applicable when the unemployment trust fund balance range is greater than
$1,400,000,000) provides that the taxable wage base shall be $7,000 and the maximum
weekly benefit amount shall be $284.
Present law provides that the Procedure to be used for the following calendar year is to be based on
the applicable fund balance range. 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, using the lower amount of the actual balance
in Louisiana Unemployment Trust Fund account on September 1st and the amount of the balance
in Louisiana Unemployment Trust Fund projected by the Revenue Estimating Conference for the
following September 1st and apply the Procedure associated with the appropriate balance range in
the present law chart to set the taxable wage base, the maximum weekly benefit and formula for
calculating benefits for the next calendar year.
Proposed law provides that notwithstanding any other provision of present law, the secretary of the
Louisiana Workforce Commission shall apply Procedure 2 for calendar year 2021.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 23:1474(J))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Labor and Industrial Relations
to the engrossed bill
1. Removes provisions relative to the Incumbent Worker Training Program and the
amount appropriated through the social charge account.