RÉSUMÉ DIGEST
ACT 91 (SB 89) 2021 Regular Session Reese
Prior law provided 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). Prior law provided that revenue collected through
Louisiana's SUTA are deposited into an account for Louisiana within the Federal
Unemployment Trust Fund. The account is referenced in prior law as the state's
unemployment trust fund and is dedicated to the payment of unemployment benefits for
Louisiana's unemployed workers.
Prior law provided 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.
Prior law provided 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
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
eekly 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.
Prior law provided that the Procedure to be used for the following calendar year is to be
based on the applicable fund balance range. Prior law required the Revenue Estimating
Conference to meet every September to adopt its official projection of the state's
unemployment trust fund balance for September first of the next calendar year and report
such to the secretary of the La. Workforce Commission. Prior law then required the secretary,
using the lower amount of the actual balance in the La. Unemployment Trust Fund account
on September first and the amount of the balance in La. Unemployment Trust Fund projected
by the Revenue Estimating Conference for the following September first and apply the
Procedure associated with the appropriate balance range in the prior law chart to set the
taxable wage base, the minimum weekly benefit, and formula for calculating benefits for the
next calendar year.
Prior law required the secretary to apply Procedure 2 for calendar year 2021.
New law provides that notwithstanding any other provision of prior law, the secretary shall
apply Procedure 2 for calendar year 2022.
Effective upon signature of the governor (June 4, 2021). (Amends R.S. 23:1474(J))