Unemployment insurance bills on hold as DUA awaits legislative intervention
Photo | Edd Cote
Downtown Worcester
The state is more than a month late in notifying businesses how much they will owe in unemployment insurance contributions for the first three months of the year, and the Department of Unemployment Insurance told employers last week it was prepared to wait until the end of March to see if the Legislature will intervene.
Gov. Charlie Baker has twice filed legislation to limit sharp increases in unemployment insurance rates for employers in 2021 due to the high volume of benefit claims last year that depleted the fund and left a $2.4 billion deficit that is expected to grow.
In a letter to employers sent Friday, DUA said that while it understands the importance of being able to plan for first quarter payments due April 30, the administration is waiting to see if the Legislature will pass its bill (H 55) to avoid an average increase of 60 percent in contributions.
"We are hopeful that the Legislature will act promptly to approve the rate schedule freeze. If the Legislature does not approve the rate freeze, as the April 30, 2021 Q1 contributions due date approaches, DUA will be prepared to issue rate notices for schedule “G” by the end of March," the letter states.
Contribution notification letters typically go out to employers by Jan. 31 of each year for first quarters bills, according to DUA. Without action on the governor's bill, rates are expected to grow from $539 to $866 per employee, on average.
Baker's bill would also authorize state borrowing to pay off federal loans taken to meet benefit obligations.
House and Senate Democrats have acknowledged the issue's timeliness, but are looking at whether to package rate relief with other reforms, including making federal Paycheck Protection Program grants tax-exempt and additional benefits for workers.
House officials have bypassed a joint committee review of Baker's bill (H 55) and sent it directly to the House Ways and Means Committee. No public hearing has been held on the governor's bill.
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