09 May 2019 Arkansas law changes how the SUI wage base is determined Recently enacted legislation (SB 298/Act 512) will change the way that Arkansas determines the state unemployment insurance (SUI) wage base in the future. Effective for tax years beginning after December 31, 2019, the SUI wage base, currently set by law at $10,000, will be determined each year by the average seasonally unadjusted unemployment insurance (UI) benefit rate for the preceding fiscal year (July 1 through June 30). Depending on the UI rate, the SUI wage base could range from $7,000 to $10,000. In addition, during times when the UI trust fund balance falls below a specified level, the SUI wage base could increase to $11,000 or $12,000. According to the Arkansas State Chamber of Commerce legislative report for March 7, 2019, should the bill apply now, the SUI wage base would decrease from the current $10,000 to $8,000. The Chamber goes on to say that by the time the law change goes into effect in 2020, the SUI wage base could drop to $7,000. As we previously reported, 2017 HB 1405 (Act 734) reduced the Arkansas SUI wage base from $12,000 to $10,000, effective January 1, 2018. (EY Payroll Newsflashes Vol. 18, #103, 6-12-2017 and Vol. 19, #204, 12-12-2018.)?? The Arkansas Department of Workforce Services generally announces the upcoming year's SUI tax rate schedule and wage base in November or December. We will issue another Alert at that time confirming the 2020 SUI wage base.
Document ID: 2019-0895 | |||||||
