Signed by Governor Mitch Daniels, Jr.

Vote Smart's Synopsis:

Vote to pass a bill regarding unemployment benefits and business tax rates.

Highlights:

• Expands the definition of ineligible recipients of unemployment benefits in the Indiana Code to include individuals that (Secs. 1, 2, & 3):
• Are employed for any week on an on call or as needed basis;
• Are paid for personal services;
• Are on a paid or unpaid vacation week as long as there is assurance of employment after the vacation period; or
• Were not paid because of a contract between the individual and the employer.

• Defines "wage credits" as "remuneration paid for employment by an employer to an individual and remuneration received as tips or gratuities" and are limited to $9,250 (Sec. 4).

• Requires each employer to pay 5.6 percent of wages in unemployment insurance contributions after December 31, 2010 (Sec. 6).

• Specifies that this bill applies to, but is not limited to, employers who in the calendar year after December 31, 2010 have been subject to previous legislation for 36 consecutive months and have had payrolls in each of the 3 preceding 12 month periods (Sec. 7).

• Requires that each employer pay an unemployment insurance surcharge that equals 13 percent of the employer's contribution paid towards interest on the money borrowed by the state from the federal unemployment account (Sec. 7).

• Specifies that the money received by the state from employers may be used to pay the interest on money borrowed by the state from the federal unemployment account, and that remaining funds must be deposited in the unemployment insurance benefit fund (Sec. 7).

• Establishes the insurance solvency fund for the purpose of paying interest on the money borrowed by the state from the federal unemployment trust fund (Sec. 8).

• Specifies the contribution rate of each employer as 2.7 percent before January 1, 2011, and 2.5 percent after December 31, 2010 (Sec. 9).

• Specifies that all eligible individuals who make claims for unemployment before July 1, 2011 shall receive the following (Sec. 11):
• 5 percent of the first $2,000 of the individual's wage credits in the calendar quarter of the individual's base period in which the individual's earnings were highest; and
• 4 percent of the remaining wage credits in the calendar quarter during the individuals base period in which the individuals earnings were highest.

• Specifies that all eligible individuals who make claims for unemployment after July 1, 2012 shall receive 47 percent of the prior average weekly wage received by the individual up to a maximum of $390 (Sec. 11).

• Specifies that disqualification of unemployment benefits does not apply to a distribution from a pension, retirement, or annuity plan of an employer so long as the recipient uses the distribution to satisfy a "severe financial hardship" that resulted from an unseen emergency and was beyond the control of the individual (Sec. 14).

• Specifies that when a claim is filed the individual be advised that, after December 31, 2011, he or she may elect to have state adjusted gross income tax and local taxes deducted and withheld from their payment of unemployment compensation (Sec. 15).

Full Bill Text