Vote Smart's Synopsis:

Vote to pass a bill that establishes special tax provisions for unemployment compensation due to the COVID-19 pandemic.

Highlights:

• Prohibits employer's unemployment contribution general experience rate plus individual unemployment experience rate from exceeding 5.4% (Sec. 1-1).

• Specifies the unemployment insurance contribution rate for each eligible employer will be the sum of two rates: his individual experience rate in the range from 0% to 5.4%, plus a general experience rate (Sec. 1.v-1).

• Requires each employer to pay unemployment insurance contributions equal to 5.4% of taxable wages paid by him each calendar year and except that each newly subject employer shall pay unemployment insurance contributions at the rate of 1% of taxable wages, for his first year of liability, 1.1% of taxable wages for his second year of liability, and 1.2% of taxable wages for his third and subsequent years of liability unless the employer's experience-rating record has been chargeable throughout at least 12 consecutive calendar months (Sec. 2-1.a).

• Establishes in the event an employer pays an amount insufficient to cover the total contributions due, the amounts due shall be satisfied in the following order (Sec. 2-2.a.ii):

• Unemployment contributions;

• Mississippi Workforce Enhancement Training contributions, State Workforce Investment contributions and the Mississippi Works contributions, known collectively as the Mississippi Workforce Investment and Training contributions,on a pro-rata basis;

• Interest and damages; and

• Legal and processing costs

• Specifies all contributions collected for the State Workforce Enhancement Training Fund, and the State Workforce Investment Fund and the Mississippi Works Fund will be initially deposited into the Mississippi Department of Employment Security bank account for clearing contribution collections and subsequently transferred to the Workforce Investment and Training Holding Account and will be held by the Mississippi Department of Employment Security in such account for a period of not less than 30 days (Sec. 2.c).

• Requires all enforcement procedures for the collection of delinquent unemployment contributions to be applicable in all respects for collections of delinquent unemployment insurance contributions designated for the Unemployment Compensation Fund, the Mississippi Workforce Enhancement Training Fund, and the State Workforce Investment Board Fund and the Mississippi Works Fund (Sec. 2.d).

• Requires the State Workforce Investment Board to make a recommendation to the House and Senate Appropriations Committees on future uses of funds deposited to the State Workforce Investment Fund account. Such future uses may include (Sec. 2-4):

• The development of promotion strategies for workforce development programs;

• Initiatives designed to reduce the state's dropout rate including the development of a statewide career awareness program;

• The long-term monitoring of the state's workforce development programs to determine whether they are addressing the needs of business, industry, and the workers of the state; and

• The study of the potential restructuring of the state's workforce programs and delivery systems.

Full Bill Text