Unemployment Insurance Stimulus Payment Facts by ysh11368

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Unemployment Insurance Stimulus Payment Facts
   Louisiana is accepting federal stimulus money       Estimates are based upon 2009 claims. Numbers
for unemployment insurance.                          may be higher, because more people are likely to file
                                                     these claims if they know they will be approved.
  We are accepting $25 per week for every UI
  benefit we pay.
                                                     Who pays?
  Total through April 6, 2010: $93.3 million.
                                                        USDOL says federal law requires ABP costs to be
  177,645 separate individuals have received         passed on to employers through their experience
  at least one payment.                              ratings, even if Louisiana still has incentive
  We are accepting $7.03 million for operational     payments in the UI trust fund. Claims costs can
  improvements in the administration of UI tax       impact an employer’s experience rating for three
  and benefit operations, outreach services such      or more years.
  as Rapid Response and for staff-assisted              Family reasons, additional training or dependent
  re-employment services.                            coverage can be funded through the social charge,
                                                     which all employers pay, not just those with layoffs.
Distribution for Modernization                       However, employers with a higher rating also pay
   Stimulus incentive payments for unemployment      a greater share of the social charge.
insurance “modernization.”
Changes required:
                                                     How much will it cost each employer?
                                                       Each rate is determined by individual factors.
Up to $32.8 million if Louisiana:
                                                       Examples:
1. Adds an “alternate base period” (ABP) for
   determining eligibility for UI benefits              Lowest Rating:
                                                       Hairdresser with 10 staff, 3 layoffs, increases from
  and up to $65.6 million more if Louisiana also:
                                                         .70
                                                       $7 to $252.56 per staff member over 3 years.
2. Keeps coverage for part-time work and               Equal to $4,278.19 for 7 staff over 3 years.
3. Expands coverage for:                               Middle Rating:
  a. Compelling family reasons, or                     Restaurant with 73 staff, 3 layoffs, increases from
                                                       $88.55 to $281.82 per staff member over 3 years.
  b. 26 weeks of approved training after regular
                                                                   ,967
                                                       Equal to $67 .90 for 70 staff over 3 years.
     benefits are exhausted, or
                                                       High Rating:
  c. Dependents
                                                       Construction with 15 staff, 3 layoffs, increases from
                                                           .09        .21
                                                       $167 to $287 per staff member over 3 years.
Cost of these changes through March 31, 2010:
                                                                      .60
                                                       Equal to $4,527 for 12 staff over 3 years.
  Adding ABP:
  More than $31.5 million per year, based on
  additional claims approved under this provision.
  ABP plus compelling family reasons:
  More than $52 million per year.
  ABP plus additional training:
  More than $46.2 million per year.
  ABP plus dependent coverage:
  More than $51.4 million per year.
Note: No additional fiscal impact for continuing
coverage for part-time work.


               ,
Updated April 7 2010

                                                                                                                    PR1003

								
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