Unemployment Flash Report TAX INFORMATION: UI Administration Information begins on page 5. August 1, 2014 Equifax Workforce Solutions BLOG!!! For the very latest information join us on our blog. http://insight.equifax.com FUTA CREDIT REDUCTION CHART: As indicated on page 3, if a state has an outstanding Title XII loan as of November 10th of each year will result in a FUTA Credit Reduction. This year some states become subject to a Benefit Cost Reduction (BCR) rate added to the normal FUTA Credit Reduction up to 2.70%. This BCR add-on is the result of five or more consecutive years of Title XII loans and the loan amount is not paid in full by November 10th of that year. The Total Credit Reduction is the sum of the FUTA Credit Reduction rate and the BCR add-on credit reduction amount. This information has been provided by the USDOL. Unemployment Weekly Claims: In the week ending July 19, the advance figure for seasonally adjusted initial claims was 284,000, a decrease of 19,000 from the previous week's revised level. This is the lowest level for initial claims since February 18, 2006 when they were 283,000. The previous week's level was revised up by 1,000 from 302,000 to 303,000. The 4-week moving average was 302,000, a decrease of 7,250 from the previous week's revised average. This is the lowest level for this average since May 19, 2007 when it was 302,000. The previous week's average was revised up by 250 from 309,000 to 309,250. Iowa: The Iowa Department of Revenue has announced that taxpayers affected by flooding in Cedar, Lyon, Plymouth, Pocahontas, and Sioux Counties have been granted an extension to file the quarterly Iowa sales and use tax and withholding returns for the period ending June 30, 2014. Those returns can be filed by September 30, 2014, without penalty or interest, for taxpayers located in one of those five counties. Maine: For tax periods beginning on or after January 1, 2015, Maine Combined Withholding and Unemployment Contribution Form 941/C1-ME will be eliminated. Regular withholding will be reported on current Form 941 ME and unemployment contributions will be reported on new form ME UC-1. See page 7 for more information. Minnesota: The Department of Revenue announced that employers that were not able to file tax returns or make payments due between June 11, 2014, and July 22, 2014 who were affected by the severe weather and flooding, are eligible for tax relief. The counties are: Anoka, Chippewa, Chisago, Dakota, Hennepin, Itasca, Kandiyohi, Lac Qui Parle, Marshall, Stearns, Wabasha, Washington, Watonwan, Wright, and Yellow Medicine. In addition, these counties have also been affects and therefore are eligible for tax relief: Beltrami, Blue Earth, Brown, Dodge, Faribault, Freeborn, Goodhue, Grant, Hubbard, Jackson, Lake of the Woods, Le Sueur, Lyon, Koochiching, McLeod, Morrison, Mower, Murray, Nicollet, Nobles, Olmsted, Otter Tail, Pipestone, Ramsey, Redwood, Renville, Rice, Rock, Roseau, Saint Louis, Scott, Sibley, Steele, Todd, and Waseca. Equifax and EFX are registered trademarks of Equifax, Inc. Inform>Enrich>Empower is a trademark of Equifax, Inc. 2014 Equifax Workforce Solutions, a/k/a TALX Corporation, a wholly owned subsidiary of Equifax Inc., Atlanta, Georgia. All rights
Page 2 Title XII Advance Activities Schedule As of: July 30, 2014 For the very latest updates and breaking news, follow our blog at http:// insight.equifax.com Equifax 11432 Lackland Rd., St. Louis, MO 63146 Email: taxalerts@equifax.com Outstanding State Advance Balance Interest for FY2014 Arizona 23,912,663.15 76,737.02 Arkansas 2,982,066.68 2,157,092.62 California 7,910,082,786.98 186,025,793.72 Connecticut 432,667,646.64 11,333,519.29 Delaware 30,710,322.83 1,315,899.50 Georgia 0 266,723.18 Indiana 916,189,341.53 25,552,906.85 Kentucky 393,019,834.11 11,634,395.80 Missouri 0 4,694,946.48 Nevada 0 1,424,740.93 New Jersey 0 2,815,516.43 New York 1,650,497,036.25 54,118,253.30 North Carolina 922,889,810.84 32,668,152.25 Ohio 1,380,454,472.40 31,559,751.07 Pennsylvania 0 1,235,519.66 Rhode Island 53,316,736.64 2,049,547.02 South Carolina 396,493,545.88 8,932,380.57 Virgin Islands 77,012,296.22 1,667,087.83 Wisconsin 0 5,939,889.25 Totals 14,190,228,560.15 385,468,852.77 General Commentary There are now a total of 13 jurisdictions borrowing federal funds totaling more than $14.1 billion as reported by the US Treasury as of this report date.
Page 3 FUTA Credit Reduction 2014 Potential 2014 Estimated 2014 Estimated Total State Credit Reduction BCR add-on Credit Reduction Arkansas 1.2% (2) 0.4% 1.6% BCR add-on Waiver Application Received California 1.2% (2) 1.5% 2.7% X Connecticut 1.2% (2) 0.5% 1.7% Delaware 0.9% (1) 0.9% Georgia 1.2% (2) 0.6% 1.8% Indiana 1.5% (2) 1.2% 2.7% X Kentucky 1.2% (2) 1.0% 2.2% X Missouri 1.2% (2) 0.4% 1.6% X New Jersey 1.2% (2) 0.0% 1.2% New York 1.2% (2) 0.7% 1.9% X North Carolina 1.2% (2) 0.6% 1.8% X Ohio 1.2% (2) 1.4% 2.6% X Rhode Island 1.2% (2) 1.0% 2.2% X Avoidance Application Received South Carolina 1.5% (2) 0.5% 2.0% X X Virgin Islands 1.2% (2) 1.5% 2.7% X Wisconsin( 3) 1.2% (2) 0.2% 1.4% X (1) This state is also potentially subject to the 2.7 additional credit reduction formula. This add-on is applicable in states following their third or fourth consecutive January 1 with an outstanding Federal advance. A description is found in FUTA section 3302 (c)(2)(b) (2) This state is also potentially subject to the Benefit Cost (BCR) additional credit reduction formula. This add-on is applicable in states following their fifth consecutive January 1 with an outstanding Federal advance. A description is found in FUTA section 3302 (c)(2)(c) (3) Wisconsin has currently paid off their Title XII loan as a result their FUTA credit will revert back to 0.60% unless they take out another loan prior to the November 10th deadline. Information provided by USDOL Website
Page 4 State Mailing Date Voluntary Contribution 2015 Unemployment Tax and Wage Base Information Protest Wage Base Min. Max. State Mailing Date Voluntary Contribution Protest Wage Base AK 12/3/2014 N/A 30 days 37,900 E TBD TBD NC 11/19/2014 30 days 5/1 21,900 E TBD TBD AL 12/5/2014 N/A 30 days 8,000 A TBD TBD ND 12/6/2014 4/30 15 days 35,400 E TBD TBD AR 12/16/2014 3/31 30 days 12,000 A TBD TBD NE 12/2/2014 1/10 30 days 9,000 A TBD TBD AZ 12/30/2014 1/31 15 days 7,000 A TBD TBD NH 8/23/2014 N/A 14 days 14,000 A TBD TBD CA 12/31/2014 N/A 60 days 7,000 A TBD TBD NJ 7/21/2014 8/20/14 8/20/14 32,000 A 1.2000 7.0000 CO 11/30/2014 3/14 20 days 12,100 E TBD TBD NM 12/23/2014 3/1 30 days 23,900 E TBD TBD CT 12/27/2014 N/A None 15,000 A TBD TBD NV 12/20/2014 N/A 15 days 27,900 E TBD TBD DC 12/13/2014 N/A 30 days 9,000 A TBD TBD NY 2/14/2015 3/31 30 days 10,500 A TBD TBD DE 12/18/2014 N/A 15 days 18,500 E TBD TBD OH 11/27/2014 12/31 30 days 9,000 A TBD TBD FL 12/10/2014 N/A 20 days 7,000 A TBD TBD OK 9/27/2014 N/A 20 days 18,700 E TBD TBD GA 1/6/2015 30 days None 9,500 A TBD TBD OR 11/15/2014 N/A 20 days 35,900 E TBD TBD HI 3/16/2015 N/A 15 days 41,200 E TBD TBD PA 12/31/2014 30 days 90 days 9,000 A TBD TBD IA 11/27/2014 N/A 30 days 27,300 A TBD TBD PR 1/30/2015 N/A 30 days 7,000 A TBD TBD ID 12/18/2014 N/A 14 days 35,600 E TBD TBD RI 1 1/16/2015 N/A 15 days Min. Max. 21,000 22,500 E TBD TBD IL 12/3/2014 N/A 15 days 12,960 A TBD TBD SC 11/1/2014 N/A 30 days 14,000 A TBD TBD IN 12/27/2014 30 days 15 days 9,500 A TBD TBD SD 10/30/2014 12/31 15 days 15,000 A TBD TBD KS 11/8/2014 30 days 15 days 12,000 A TBD TBD TN 8/30/2014 N/A 30 days 9,000 A TBD TBD KY 12/3/2014 20 days 20 days 9,900 A TBD TBD TX 12/9/2014 60 days 3 years 9,000 A TBD TBD LA 12/24/2014 30 days 20 days 7,700 E TBD TBD UT 11/18/2014 N/A 30 days 31,300 E TBD TBD MA 3/4/2015 30 days 6/20 15,000 A TBD TBD VA 12/1/2014 N/A None 8,000 A TBD TBD MD 1/15/2015 N/A 15 days 8,500 A TBD TBD VI 1/22/2015 N/A 15 days 22,500 E TBD TBD ME 12/31/2014 30 days 30 days 12,000 A TBD TBD VT 6/23/2014 N/A 7/23/14 16,000 A 1.3000 8.4000 MI 12/27/2014 30 days 30 days 9,500 A TBD TBD WA 12/10/2014 2/15 30 days 42,800 E TBD TBD MN 12/10/2014 120th day 20 days 30,000 E TBD TBD WI 10/8/2014 11/30 None 14,000 A TBD TBD MO 11/15/2014 1/15 30 days 13,000 A TBD TBD WV 12/13/2014 30 days 30 days 12,000 E TBD TBD MS 3/28/2015 N/A 30 days 14,000 A TBD TBD WY 12/23/2014 N/A 30 days 25,200 E TBD TBD MT 12/15/2014 N/A 30 days 30,100 E TBD TBD FUTA NA NA NA 7,000 A NA NA 1 The higher taxable wage base only applies to maximum rated employers A - Actual wage base, assuming no law change E - Our best estimated wage base, assuming no law change.
Page 5 UI ADMINISTRATION INFORMATION: District of Columbia: The Department of Employment Services introduced the Employer Self- Service Portal (ESSP) for employers. It is an online system for filing wage reports and paying unemployment insurance taxes. Please see page 6 for additional information concerning the introduction of this system. Michigan: The Michigan Administrative Hearings System (MAHS) recently amended their Administrative Rules 1203 and 1208. Many of the amendments are considered housekeeping, for example, replacing the term referee with administrative law judge. However, there are a couple of substantive changes. The agency will begin following the new provisions as of August 1, 2014. Rule 1203 includes amended language that says if the administrative law judge (ALJ) adjourns or continues a hearing, the new hearing date may be given orally to the parties, if that new hearing date is within 7 days (previously 10 days) of the old hearing date. Otherwise, the new hearing date must be provided via a notice that is served at least 7 days before the new hearing date. Historically, telephone hearings were held at the discretion of the ALJ. Under the amended language of Rule 1208, essentially all hearings held before an ALJ will now be conducted via telephone, unless otherwise directed by the MAHS executive director or stipulated in the law. Missouri: The unemployment law has been amended, which narrows the scope of good cause relative to voluntary quits, and redefines the definition of misconduct. The changes go into effect August 29, 2014. With regard to voluntary quits, currently, employees are disqualified from benefits if they voluntarily leave work without good cause. A broad interpretation of good cause has historically been used, based on case law. The new statutory language defines "good cause" as that which would compel a reasonable employee to cease working, or that which would require separation from work due to illness or disability. The change in the definition of good cause for voluntary quits will not affect the requirements for temporary employees of staffing firms, as language specific to separations from temporary staffing firms has not been changed. The change will also not affect a quit to move with a military spouse. Currently, the law says misconduct includes a wanton or willful disregard of the employer's interest, and a disregard of standards of behavior the employer has the right to expect. An intentional and substantial disregard of the employer's interest or of the employer's duties and obligations to the employer also qualify as misconduct. A deliberate violation of the employer's rules constitutes misconduct under current law. The amended law changes those standards to a knowing disregard of the employer s interest, and a knowing violation of the standards the employer expects. Under the new law, a violation of an employer's rule is misconduct unless the employee demonstrates that he or she did not know and could not reasonably know the requirement, the rule is unlawful, or it is not fairly or consistently enforced. Misconduct will include a violation of a no-call, no-show policy, chronic absenteeism, tardiness, unapproved absences following a written warning, and a knowing violation of a state standard or regulation by an employee of a licensed employer which would cause the employer to be sanctioned.
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