FISCAL NOTE
FUND(S):
Unemployment Compensation Enterprise Trust Fund
Sources of Revenue:
Other Fund UC Enterprise Trust Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This proposal seeks to make certain changes in our unemployment laws. The biggest changes are to make the salaries of election officials who earn $1,000 or more reportable for unemployment tax purposes, to prevent State Unemployment Tax Act dumping, to force the revocation of contracts, licenses and permits to organizations who are default in unemployment tax payment, and to benefit requirements relating to the most recent work and corporate officer benefits.
The financial impact on the agency would be minimal to develop procedures for the identification of SUTA dumping. The threat of revocation of licenses, etc... will lead to more compliance regarding payment of Unemployment Compensation taxes. Additionally, those employers now on repayment agreement will continue to stay current rather than enter into agreement solely to obtain licensure and then default on repayment. We estimate $2,000,000-$3,000,000 additional revenue. The most recent work and Corporate officer benefits could save an estimated $1,000,000-$2,000,000 in expenditures from the Unemployment Compensation Trust Fund.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
-1,500,000 |
-1,500,000 |
-1,500,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
2,500,000 |
2,500,000 |
2,500,000 |
Explanation of above estimates (including long-range effect):
The $1,500,000 estimated decrease in total costs represents the reduction in benefits to be paid due to changes in requirements for the most recent work and corporate officer benefits.
Due to the threat of revocation of business licenses, etc...,, businesses will become more compliant in paying their unemployment taxes. Employers will stay current with the payment of their premiums to avoid the consequences.
There would be a minimal financial impact in the area of development of procedures to identify SUTA dumping.
Memorandum
Except in the areas mentioned above, we don't believe that there would be any financial impact to the agency. We don't believe that there would be any additional personal services costs or other costs associated with the implementation of this bill.
Person submitting Fiscal Note: Angela Leshon
Email Address: aleshon@wvbep.org