{"id":26526,"date":"2021-01-13T17:13:00","date_gmt":"2021-01-13T22:13:00","guid":{"rendered":"https:\/\/framinghamsource.com\/?p=26526"},"modified":"2021-01-13T17:15:32","modified_gmt":"2021-01-13T22:15:32","slug":"baker-polito-administration-re-files-unemployment-legislation-to-provide-employer-relief-ensure-trust-fund-solvency","status":"publish","type":"post","link":"https:\/\/framinghamsource.com\/index.php\/2021\/01\/13\/baker-polito-administration-re-files-unemployment-legislation-to-provide-employer-relief-ensure-trust-fund-solvency\/","title":{"rendered":"Baker-Polito Administration Re-Files Unemployment Legislation to Provide Employer Relief, Ensure Trust Fund Solvency"},"content":{"rendered":"\n<p><strong>The following is a press release from the Governor&#8217;s office submitted to SOURCE media.<\/strong><\/p>\n\n\n\n<p>***<\/p>\n\n\n\n<p><strong>[broadstreet zone=&#8221;53820&#8243;]<\/strong><\/p>\n\n\n\n<p>BOSTON\u00a0\u2013 The Baker-Polito Administration today, January 13,  re-filed\u00a0unemployment insurance legislation\u00a0initially filed last month.<\/p>\n\n\n\n<p> The Governor\u2019s legislation aims to sustain unemployment benefits and provide an estimated $1.3 billion in unemployment insurance relief to the Commonwealth\u2019s employers over two years. <\/p>\n\n\n\n<p>In addition to a two-year unemployment insurance tax schedule freeze, the legislation also proposes financing measures designed to ensure the solvency of the Unemployment Insurance Trust Fund and that federal borrowing that has occurred is repaid in a responsible and affordable manner.<\/p>\n\n\n\n<p><strong>[broadstreet zone=&#8221;59945&#8243;]<\/strong><\/p>\n\n\n\n<p>The main provisions of this legislation include:<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li><strong>Short Term Employer Tax Relief&nbsp;through a two-year tax schedule freeze.<\/strong>&nbsp;Current Massachusetts unemployment legislative statute requires the employer tax schedule to increase from schedule E to schedule G. This would cause an average per employee tax increase from $539 to $866 \u2013 a nearly 60% increase over the previous year. Remaining on schedule E for 2021 and 2022 slows annual employer contribution growth from $539 average per employee costs in 2020 to $635 in 2021 and $665 in 2022.&nbsp;<\/li><\/ol>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\" start=\"2\"><li><strong>Authorization for the issuance of special obligation&nbsp;bonds&nbsp;for the purposes of repaying federal advances.<\/strong>&nbsp;In order to fund the unprecedented increases in demand on the unemployment system in Massachusetts as a result of COVID-19, the Commonwealth has received federal cash advances. Through the issuance of bonds, the Commonwealth will be able to ensure positive trust fund solvency to enable the continued payment of benefits. The utilization of capital markets also allows Massachusetts to avoid paying punitive federal tax increases on employers regardless of their experience rating if federal advances are not repaid by November of 2022. Bonds issued will be supported by an unemployment obligation assessment and will not be general obligations of the Commonwealth.<\/li><\/ol>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\" start=\"3\"><li><strong>Establishes an employer surcharge on contributory employers.<\/strong>\u00a0In 2020 all federal advances taken to pay benefits are interest free. However, interest on federal advances will begin to be charged beginning in January of 2021. The first interest payment is due in the Fall of 2021 and it cannot be paid from the state unemployment trust fund, per federal law. To fund interest payments on repayable advances, the legislation also establishes a separate fund to house surcharge proceeds. The passage of this provision authorizes the Department of Unemployment Assistance to make this assessment but does not require the surcharge if interest is waived through future federal legislation.\u00a0<\/li><\/ol>\n\n\n\n<p><strong>[broadstreet zone=&#8221;59948&#8243;]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The following is a press release from the Governor&#8217;s office submitted to SOURCE media. *** [broadstreet zone=&#8221;53820&#8243;] BOSTON\u00a0\u2013 The Baker-Polito Administration today, January 13, re-filed\u00a0unemployment insurance legislation\u00a0initially filed last month. The Governor\u2019s legislation aims to sustain unemployment benefits and provide an estimated $1.3 billion in unemployment insurance relief to the Commonwealth\u2019s employers over two years. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":21470,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[9,15,57],"tags":[755,609,757,4161,4044,8315],"class_list":["post-26526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-government","category-state-federal-government","tag-baker-polito-administration","tag-coronavirus","tag-gov-charlie-baker","tag-legislation","tag-unemployment-insurance","tag-unemployment-insurance-trust-fund"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Baker-Polito Administration Re-Files Unemployment Legislation to Provide Employer Relief, Ensure Trust Fund Solvency - Framingham Source<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/framinghamsource.com\/index.php\/2021\/01\/13\/baker-polito-administration-re-files-unemployment-legislation-to-provide-employer-relief-ensure-trust-fund-solvency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Baker-Polito Administration Re-Files Unemployment Legislation to Provide Employer Relief, Ensure Trust Fund Solvency - Framingham Source\" \/>\n<meta property=\"og:description\" content=\"The following is a press release from the Governor&#8217;s office submitted to SOURCE media. *** [broadstreet zone=&#8221;53820&#8243;] BOSTON\u00a0\u2013 The Baker-Polito Administration today, January 13, re-filed\u00a0unemployment insurance legislation\u00a0initially filed last month. The Governor\u2019s legislation aims to sustain unemployment benefits and provide an estimated $1.3 billion in unemployment insurance relief to the Commonwealth\u2019s employers over two years. 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