HSB 735

_____ the explanation’s substance by the members of the general assembly. This bill modifies the definition of “taxable wages” for purposes of unemployment insurance taxes on employers by eliminating the wages paid to an employee from another state from the calculation of wages upon which an employer is required to contribute to the unemployment compensation fund (fund) when the other state extends a like comity (reciprocity) to Iowa for employment purposes.1A(36).33 percent of the statewide average weekly wage used during the previous calendar year, which is then multiplied by 52 and rounded to the nearest $100 to determine maximum weekly benefit amounts. 1A(36). The calculation of the unemployment contribution rate each year is a dynamic calculation dependent upon the calculation of the current reserve ratio, the benefit ratio rank, and the contribution rate table in effect for the rate year. The bill changes the current reserve ratio calculation, the number of benefit ratio ranks, the contribution rates, and the contribution rate table. The current reserve ratio (calculation of available benefit amount in fund) determines the contribution rate table in effect for the rate year following the computation date. _____ of the ratio on the preceding year rather than the previous five calendar quarters, and strikes the requirement that $150 million be added on the reserve ratio computation date to the total funds available for benefits. The bill also strikes the computation of the highest cost-benefit ratio and removes the ratio from the computation of the current reserve ratio. The bill modifies the contribution rate table by reducing the number of possible rate tables that could be in effect for the rate year from eight contribution rate tables to four contribution rate tables. Under the bill and current law, only one contribution rate table may be in effect per rate year. In reducing the number of possible contribution rates tables from eight to four, the bill also changes the numbered contribution rate designations to lettered contribution rate designations. Under current law, there are 21 benefit ratio ranks in the contribution table. The benefit ratio is a calculation based upon the average number of unemployment benefits charged to an employer over previous calendar quarters. The higher the benefits charged to an employer, the higher the benefit ratio rank the employer receives. The bill reduces the number of benefit ratio ranks from 21 to 9.76 percent of total taxable wages.76 percent of total taxable wages.0 percent.40 percent. _____ the year.