Introduced
by
To revise details of the law that makes it illegal for a company to transfer or acquire a business, or a portion of one, for the purpose of lowering its unemployment insurance tax. Under the State Unemployment Tax Act (SUTA), these tax assessments are based on a firm’s layoff history, and the prohibition was adopted to address concerns that some firms were “SUTA dumping” by transferring employees to newly created or acquired companies with lower unemployment tax rates. The bill increases the penalty of a higher tax assessment by extending it for three years instead of just one.
Referred to the Committee on Labor
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
The substitute passed by voice vote
Amendment offered
by
To assess fines not on the basis of a calendar year rate but a rate for a year, not necessarily a calendar year. Also, to not revise the definition of "SUTA dumping" as proposed by the bill, which would make it transferring all or part of a trade or business in a manner that results in a violation of the act; or acquiring all or part of a trade or business, solely or primarily for the purpose of reducing unemployment insurance charges.
The amendment failed by voice vote
Passed in the House 62 to 40 (details)
To revise details of the law that makes it illegal for a company to transfer or acquire a business, or a portion of one, for the purpose of lowering its unemployment insurance tax. Under the State Unemployment Tax Act (SUTA), these tax assessments are based on a firm’s layoff history, and the prohibition was adopted to address concerns that some firms were “SUTA dumping” by transferring employees to newly created or acquired companies with lower unemployment tax rates. The bill increases the penalty of a higher tax assessment by extending it for three years instead of just one.
Referred to the Committee on Commerce and Tourism
Reported without amendment
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
